Bitcoin Faces September Correction as History Suggests Weak Month Ahead
Bitcoin's August rally has ended, but its price remains above $78,000. The cryptocurrency saw a modest pullback after reaching an all-time high of $81,455 in August.
The strong performance was driven by increased institutional demand and the U.S. Treasury doubling its long-term bond buybacks to at least $4 billion per operation.
However, September has historically been a weak month for Bitcoin, with an average return of around -3%. The CoinGlass data shows that in several years, including 2013, 2017, and 2020, strong gains in July and August were followed by a correction in September.
Crypto analyst Crypto Rover noted that Bitcoin has formed a bullish cross between its 50-day and 100-day moving averages, but this signal was also present before the cryptocurrency dropped 17% in January 2023. A similar pullback could happen in September, raising concerns about the sustainability of the current rally.