🔴A Bloody September for Markets?

September looks like it will be bloody for Crypto assets, here is what to expect.

Sep 03, 2024

Hey Thinkers 💡

Wake Me Up When September Ends! 😴

Prepare for a potentially rocky and bloody September. Historical data shows that August and September are not great months for Bitcoin and crypto. They are the worst-performing months. While there's no guarantee that history will repeat itself exactly, we must lean toward what history has shown us.

Additionally, the Dollar Currency Index (DXY) was in the RSI oversold zone and is now bouncing on the daily chart. It may find short-term strength before continuing its move downward below 100. However, this suggests that some pain may lie ahead for assets, given the inverse correlation with the DXY.

We need to be patient and wait out September, as the real party may start again in October. Historically, this pattern is nothing new. Here’s some perspective:

This is what Bitcoin was doing in August through September 2020, the halving year—boring zone, dump, sideways chop, and then a rally in October to new all-time highs.

Here’s what it was doing in August through September 2016. Looks familiar, right?

The Fed is expected to cut rates this month and that could also add to the volatility of the markets. Eventually things will bottom out and normalize so we can keep moving upwards.

It’s also important to note that Bitcoin’s price action after the U.S. elections in November is historically incredibly bullish.

Moreover, data from Santiment shows that whales have been buying Bitcoin. A net gain of 283 wallets holding at least 100 BTC has emerged in just one month. The current 16,120 such wallets on the network marks a 17-month high.

It seems smart money is leaning on the side of historical data and preparing for new all time highs as the bull market continues.

HODL and be patient!

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📰 Latest Crypto News:

Ripple will soon add Ethereum-compatible smart contracts to the XRP Ledger using sidechain networks in a move that boosts the fundamentals of the closely related XRP - source
SEC should create ‘customized’ S-1 forms for digital asset securities: commissioner Mark Uyeda - source
Qatar improves regulatory clarity for cryptocurrency with newly released framework by major SEZ - source

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