September Starts with Significant Losses for Bitcoin
The Bitcoin market has kicked off September with notable losses, as the cryptocurrency’s price has dropped by 9.16% in the last week, according to CoinMarketCap data. The largest cryptocurrency has seen its value fall below $53,000, reaching price levels not observed since early August. Interestingly, despite the lower prices, investor interest in buying Bitcoin appears to have waned.
Investors Hold Back on Bitcoin Accumulation – What Could Be Behind It?
On Friday, Ali Martinez highlighted on X that the Accumulation Trend Score (ATS) for Bitcoin is approaching zero. The ATS balances accumulation and distribution activities in the Bitcoin market. A score nearing zero indicates that Bitcoin investors are either offloading their holdings or actively purchasing the premier cryptocurrency. This trend suggests a decline in buying interest, which is unusual given the price drop. Lower prices typically present an opportunity for accumulation using dollar-cost averaging strategies.
One possible reason for the decline in ATS could be that investors believe the Bitcoin market has not yet bottomed out, and they are waiting for a more attractive entry point. Notably, Arthur Hayes, co-founder of BitMEX, has predicted that Bitcoin could fall below $50,000 this weekend amidst the current downtrend. However, Hayes has not specified a particular support level for the crypto asset.
What’s Next for Bitcoin?
Bitcoin’s bearish start to September is not entirely surprising given its historical performance. Over the last 11 years, the token has recorded an average loss of 4.78% in September. With nearly a 10% decline in the first week, it’s plausible that Bitcoin could experience a double-digit loss by the end of the month, similar to what occurred in 2014 and 2019.
However, there is a glimmer of hope. Recent data from Non-Farm Payroll shows an increase of 142,000 jobs in the US, with an employment rate of 4.2%. Based on these figures, Citi analysts have previously predicted that the US Federal Reserve might implement a 25 to 50 basis points rate cut at its September 18 meeting. If this prediction holds true, Bitcoin could see a price boost in the final weeks of September, leading into October, a month when the crypto market leader historically records double-digit gains.
As of the time of writing, Bitcoin is trading at $53,855, reflecting a 4.13% decline in the last 24 hours. Meanwhile, the asset’s daily trading volume has surged by 58.82%, valued at $49.3 billion.
