Bitcoin, the first and largest cryptocurrency by market capitalization, has reversed its gains for August, down 2.07% for the month so far, according to TradingView data.
Bitcoin had tested an all-time high of $124,533 in the month, surprising traders who expected an August pullback for cryptocurrencies, particularly in what has historically been a slow trading month for many markets — until the September Fed meeting.
Bitcoin marked four straight months of gains from April through July. However, August is often associated with slower trading activity and lower volume. The last three Augusts of recent years have seen Bitcoin record double-digit percentage losses.
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Around press time, Bitcoin was trading down 0.28% daily and 6.83% weekly to $113,315, having dropped to a low of $112,344 in Wednesday’s session.
Many consider the ongoing drop this month as a healthy cooldown, owing to crypto ETF inflows and Bitcoin treasury firms that are aggressively accumulating BTC.
Bitcoin’s “Sendtember?”
With Bitcoin’s price drop in August, the market is anticipating what will happen in September. According to Kaleo, September has marked a local bottom four out of the last five years for Bitcoin. “Sendtember is a springboard for Uptober,” Kaleo wrote.
Historical data reveal that Bitcoin often underperforms in September, with an average negative return of 5%, making it one of the year’s weakest months.
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A recovery trend is seen after Bitcoin’s drop in September, as reflected in strong performance in Q4. Based on historical data, Bitcoin usually sees an average gain of 88% in Q4 as it recovers from earlier drop in August and September, which usually marks a bottom for its price action. October — referred to as “Uptober” in crypto parlance — marks strong performance for Bitcoin price, adding to the usually seen positive performance in Q4.
It remains to be seen whether history repeats this coming September, considering the possibility of rate cuts at the Fed’s September meeting.
Source: https://u.today/whats-next-for-bitcoin-in-september-analyst-reveals-key-historical-sendtember-trend
