Despite September’s historical reputation as a challenging month for Bitcoin, some traders and analysts remain hopeful that the cryptocurrency could close the month on a strong note. Tyr Capital’s Chief Investment Officer, Ed Hindi, believes that Bitcoin is more likely to finish September above $60,000 than below it.
“Although September is historically a negative month for BTC, a combination of a Federal Reserve rate cut and a relatively robust US economy could surprise the bears.”
He added that the chances of Bitcoin closing the month above $60,000 are higher than the chances of it falling below that level.
At the time of publication, Bitcoin was trading at $56,633, according to CoinMarketCap data, having remained below $60,000 since August 30. While some traders do not expect a near-term move back to $60,000, such a recovery could result in the liquidation of over $584 million in short positions, according to CoinGlass data.
Bitcoin is down 0.85% over the past 30 days. Source: CoinMarketCap
Meanwhile, crypto trader Daan Crypto Trades pointed out that despite Bitcoin’s typical September slump, the average return of -4% is not as severe as many might perceive. CoinGlass data shows that September has historically been the worst month for Bitcoin, with average losses of 4.49%.
September has had the most Bitcoin red months since 2013. Source: CoinGlass
Daan Crypto Trades is currently focusing on Bitcoin’s longer-term price action, particularly looking for a “higher high and higher low,” which signals that buyers are dominating the market. He explained, “I’m mostly watching for price to flip its market structure to bullish.” For him, Bitcoin needs to trade above $65,000 to demonstrate strength.
This view aligns with that of crypto analyst Matthew Hyland, who stressed the importance of Bitcoin bouncing back above key levels to confirm the uptrend that began in August.
While uncertainty lingers, many industry experts suggest that Bitcoin could deliver a surprise to those expecting a typical September downturn.
