Analyst Timothy Peterson examines historical Bitcoin price data and identifies a pattern of seasonal weakness, particularly in September.
Seasonal Weakness in the Market
Peterson argues that Bitcoin is subject to seasonal fluctuations. His analysis shows that September 21 has historically had the largest average losses, with a median drop of 2%. Other problematic dates include March 22 (-1.52%) and September 24 (-1.50%), with two of the worst trading days occurring in late September.
Importance for Traders
Seasonal price trends are not unique to crypto, as similar patterns can be observed in equities and commodities. Peterson emphasizes the importance of these dates as risk alerts for traders, especially amidst other market stressors.
Price Outlook for Bitcoin
According to Peterson, despite a 6.5% drop in August, Bitcoin is projected to finish September between $97,000 and $113,000. He points out that short-term declines do not necessarily indicate negative long-term trends, although September remains a challenging month for forecasting.
Understanding seasonal patterns can help traders gauge risks, though current market conditions and external factors may impact these forecasts.
