According to Cointelegraph: Bitcoin starts September with a dip, as both the monthly and weekly close trigger a downside in BTC's price, leading some to question whether the market is in for another "Rektember." Trading around $57,000, Bitcoin is facing low bullish sentiment, and analysts are closely watching key indicators and market movements to gauge what might come next.
Here are five key things to know about Bitcoin this week:
1. BTC Price Courts August Lows
Bitcoin struggled to impress around the latest monthly close, with prices hovering near $57,000. Analysts like Skew point out a broad lack of interest in derivatives markets, suggesting that funding rates may stay low or negative. Some traders are even forecasting a dip to $56,000 or lower before any potential relief rally.
2. Labor Day Week Puts U.S. Jobs in the Spotlight
With U.S. markets closed for Labor Day, traders are looking ahead to unemployment data later in the week. This data is crucial as it may influence the Federal Reserve's decision on interest rates at their September 18 meeting. The market is currently pricing in a small 0.25% rate cut, but traders are keeping an eye on potential volatility as economic data is released.
3. A Historically "Red" September?
September has historically been a challenging month for Bitcoin, with average losses of around 4.5%. However, despite August's disappointing performance, some analysts believe that a breakout could still occur in late September, potentially leading to a stronger October.
4. Puell Multiple Suggests a Buying Opportunity
The Puell Multiple, a popular Bitcoin indicator, is approaching levels that could signal a favorable buying opportunity. Currently fluctuating between critical levels, the Multiple suggests that while Bitcoin is not at a macro top or bottom, it may be nearing a buy zone that has historically led to significant gains.
5. Deep Learning Model Predicts BTC Price Bounce
While September is typically a down month for Bitcoin, new analysis from CryptoQuant's WaveNet deep learning model suggests that 2024 might be an exception. The model predicts a "relative increase" in Bitcoin's price, with a 50% probability of reaching up to $65,000 in September.
As traders brace for potential volatility, the focus remains on whether Bitcoin can break out of its current range and deliver a stronger performance in the months ahead.
