Investors are bracing for what’s known as “Red September,” the month of the year when Bitcoin (BTC) and other cryptocurrencies tend to register their worst performance of the year.
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September is already living up to its billing as the worst month of the year for crypto, with Bitcoin’s price hovering around $109,000, down from an all-time high of just over $124,000 achieved in mid-August. Some analysts say BTC could fall below $100,000 over the next month if the current selling continues.
Despite notching an all-time high in August, Bitcoin ended the month down 6.5%, snapping a four-month winning streak and entering September on a weak footing. Analysts blame the current slide in BTC on U.S.-listed spot exchange-traded funds (ETFs), which have seen $751 million of outflows recently.
Key Support Levels
Bitcoin isn’t the only crypto in the red to start September. Ethereum (ETH), Dogecoin (DOGE), and other digital assets have also declined since the end of August as investors appear to have turned more risk averse and concerned about macroeconomic indicators.
BTC recently broke below key support levels, notably its 50-day and 100-day moving averages, suggesting further price declines ahead. Analysts say the current breakdown underscores growing market weakness, confirming a bearish shift in investor sentiment. The next key support level for Bitcoin is its 200-day moving average at $101,366.
September has historically been a bearish month for BTC. Since 2013, Bitcoin’s price has fallen an average of 3.49% during September, making it the worst month of the year for the cryptocurrency.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on cryptocurrencies such as Bitcoin, so we’ll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 1.79% in the last 12 weeks.
