Bitcoin (BTC) is on track to see its worst August performance since the 2015 bear market – and next month could be even worse.
Data from the on-chain analytics resource Coinglass It shows that BTC/USD hasn’t had a month of August that bad for seven years.
September Mean Bitcoin Price Losses 5.9%
After two major bitcoin price drops in recent weeks, bitcoin scammers are understandably scared — but historically, September has fared worse than August.
At $20,000, the BTC/USD pair is down 14% this month, making August the biggest loss since 2015, when the pair posted a monthly red candle of 18.67%.
Subsequent years have proven that August can be a mixed bag when it comes to Bitcoin price performance – in 2017, for example, the largest cryptocurrency gained over 65% in a bullish slate.
However, one month that leaves no one guessing when it comes to the possible direction of the price, is September. Already known as the “red” month for Bitcoin, the average loss since Coinglass records began in 2013 has been close to 6%.
Historically down the month of September
“September”
– Trader_J (Trader_Jibon) August 26, 2022
This time around, aggregate instability combines with tradition to deliver bleak forecasts from analysts.
“The stock market in general is not looking very good at the moment so this drop in $BTC is a reflection of that,” trader Josh Rager Summarization As Bitcoin threatened to support $20,000.
“September in general isn’t a great month in historical terms. This month will probably be an opportunity for buyers for the following months. I’d be an immediate long-term buyer on less than $20,000.”
Rager has been arguing over the possibility of bitcoins from the Mt.Gox rehab being sold en masse by creditors for receiving them after an eight-year wait. As Cointelegraph mentionedMany believe that such an event will not happen, with fears to the contrary unfounded.
Monthly chart ‘looks really ugly’
Turning to the monthly close, nervous commentators focused on whether Bitcoin could avoid a monthly candle that ends below the $20,000 mark.
Related: Why September is shaping up to be an ugly month for Bitcoin
If he fails to do so, BTC/USD will rival June in terms of declines not seen on the chart since the end of 2020.
Even worse, such an event could trigger a massive sell-off, anxious Galaxy Trading warned Twitter followers over the weekend.
“On TF monthly things look really ugly” Wrote in a day.
“If the monthly candle closes below 20K in 3 days, it could lead to a big sell-off of at least 14K where the next big support is. The reason for a close below 19900 means a bearish candle which is very bad in a big TF.”
Any move significantly below $20,000 would violate the pivotal area that has been in place since the first move above that level in 2020, explained Caleb Franzen, chief market analyst at Cubic Analytics.
“Bitcoin appears poised for a deeper retest of the major pivot range, which was determined using the wick and the monthly close of December 2017. This range was perfect resistance in 2019, served as a springboard in 2020, and was trying to act as support in 2022.” explained About the monthly chart.
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