Bitcoin is known for struggling in September, and this year seems to be following the same trend. Earlier today, Bitcoin dropped another 4.46%. On August 24, BTC briefly climbed back up to $65,000 and stayed there for two days, but since its decline began on August 26, it suggests September might be another tough month for Bitcoin.
Are we in for rough times ahead? Let’s find out.
Stock Market Crumbling – Will it Impact Bitcoin?
The main reason for Bitcoin’s drop today is the losses in US and Asian stock markets, where some major stocks fell by up to 10%. Key indices like the Nasdaq 100 and S&P 500 also dropped by about 3.5%. In Asian markets, declines were seen not only in stocks but also in currencies and commodities.
When traditional markets take a hit, the crypto market often follows suit, which is what we’re seeing now.
Key Bitcoin Levels to Watch
Currently, Bitcoin is trading at $56,751, hovering just above the support level of $56,600. If it fails to stay above this level, Bitcoin might head down to $54,000. Market sentiment remains negative, with the Fear and Greed Index at 27, indicating fear among investors. The Relative Strength Index (RSI) has also dipped to 33.43, showing a decline in bullish momentum.
Altcoins Feel the Pressure
Bitcoin’s price drop caused a decline in altcoins as well. The second-largest cryptocurrency, Ether, fell by 6.07%, while BNB, Solana, and Dogecoin saw drops of 4.29%, 6.13%, and 3.75%, respectively. It is common for altcoins to follow Bitcoin and hence we can see a 4.67% fall in the market cap of the whole crypto market which now stands at $1.99 trillion.
September Is Not Off to a Great Start
This early September decline points to the possibility of another bearish month, consistent with Bitcoin’s past performance during this time of year. Investors should be cautious with their financial decisions. While this period might be challenging for long-term investors, traders can still find opportunities amid the market’s fluctuations.
As the month continues, all eyes will be on whether Bitcoin can break this historical pattern or if September will once again prove to be a difficult time for the cryptocurrency.
Also Read: Fear Rises as Crypto Market Crash: Santiment Report Reveals Bitcoin’s Next Price Target
Now is the time to reassess your crypto portfolio. Are you prepared for the potential challenges ahead?
