Some Bitcoin traders seem to be brushing off concerns of the usual September dump, even though history suggests otherwise, pointing to the macro environment as a strong enough factor to challenge the ongoing narrative.
“Although September is historically a negative month for BTC, the combination of a FED rate cut and a relatively robust US economy could surprise the bears,” Tyr Capital chief investment officer Ed Hindi told Cointelegraph.
“We believe the chances of BTC settling above USD 60K to be higher than the chances of it settling below it,” Hindi added.
At the time of publication, Bitcoin (BTC) is trading at $56,633, having remained below $60,000 since Aug. 30, according to CoinMarketCap data.
Bitcoin is down 0.85% over the past 30 days. Source: CoinMarketCap
Although future traders do not anticipate a near-term move back up $60,000. Bitcoin revisiting $60,000 will erase over $584 million in short positions, as per CoinGlass.
Meanwhile, crypto trader Daan Crypto Trades told Cointelegraph that “in September, the average return is about -4%. Considering Bitcoin’s volatility, that's not as bad as people perceive it to be.”
CoinGlass data reveals that September is the worst month for average Bitcoin losses at 4.49%.
September has had the most Bitcoin red months since 2013. Source: CoinGlass
Daan Crypto Trades explained that in the near-term he is watching Bitcoin’s longer-term price chart for a “higher high and higher low,” which is a bullish signal that indicates that buyers are dominating the market over sellers.
“I’m mostly watching for price to flip it’s market structure to bullish,” he explained.
“For now I would want to see BTC trading back above 65K to show strength,” he added.
It follows shortly after crypto analyst Matthew Hyland highlighting the need for similar price action after Bitcoin fell below $58,000 on Aug 30.
“We really need to start to bounce out of this and make a higher high to further confirm that we are in this uptrend that we’ve been in since August,” Hyland said in an analysis video on Aug. 30.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
