Is Another Massive Bitcoin Sell-Off Coming?

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Bitcoin posts second-worst monthly close In 2024, after finishing August with losses of 8.6%. This is slightly less than the losses of April, when the price fell by 14.76% in a single month. As this red close shook investors, September followed with mixed feelings. While some expect the price of Bitcoin to recover during this time, others expect the decline to continue, with one analyst predicting a significant price drop.

Will September see another Bitcoin price drop?

A crypto analyst using the username @thedefivillian on the X platform (formerly Twitter) planned Bitcoin is likely to see a price crash. The cryptocurrency analyst points out that the past two months have seen massive price drops for the leading cryptocurrency, and September will be no different.

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More specifically, the crypto analyst points out that the fifth day of every month has seen a price crash. The first was on July 5, when Bitcoin crashed below $55,000. Then again, on August 5, Bitcoin price The digital currency witnessed another major collapse that pushed it below the $50,000 level.

Now, with September also expected to be bearish, the crypto analyst believes another crash could be coming. “September 5th is coming soon. Are you ready for another shocking event?” X’s post read.

If this trend continues, Bitcoin could see another major crash on September 5. Given the past two months, when each crash was worse than the last, a potential crash on September 5 could be even worse than here, possibly pushing Bitcoin price Less than $40,000.

A bearish month to deal with.

Historically, September has been a very bearish month for Bitcoin. This fact is made even more prominent by the fact that the month actually started in the red as Bitcoin failed to reclaim the $60,000 level again, according to Data From Coinglass.

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It’s one of the most bearish months on average and one of only two months to maintain negative returns on average and median. Out of 12 years of historical price data, September has returned to negative returns for Bitcoin nine years. If the trend continues, September could be even worse than August.

Source: Coinglass

However, there is light at the end of the tunnel for Bitcoin price as September has often been the last bearish month before each bull market begins. This means that investors may only have a month left to absorb losses before the bull market begins.

Bitcoin Price Fails to Hold $58,000 Level | Source: BTCUSD on Tradingview.com

Featured image created using Dall.E, chart from Tradingview.com

BitcoincomingMassiveSelloff