Bitcoin has historically been bearish in September, and it seems that this year will be no different. This morning, Bitcoin fell another 4.46%. On August 24, BTC climbed back up to $65,000 and consolidated in that zone for two days. Since its decline started on August 26, it signals that September will likely be another bearish month.
International Stocks Tremble
The major reason for this morning’s drop in Bitcoin is the losses in the US and Asian equity markets, where some major stocks tumbled by as much as 10%. Stocks tracked by the Nasdaq 100 and S&P 500 also saw a drop of about 3.5%. In Asian markets, losses were seen not only in stock indices but also in currencies and commodities. It is common for the crypto market to witness a fall if the traditional markets start looking for a loss.
Current Condition of Bitcoin
Bitcoin is currently trading at $56,751. It is trying to stay above the latest support zone of around $56,600. If it fails to hold this level, Bitcoin may be forced to head toward $54,000. The Fear and Greed Index was recorded at 27 this morning, indicating a bearish sentiment in the market. The RSI has dipped down to 33.43 mark, indicating a fall in bull’s strength.
Impact on Altcoins
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.
Looking ahead
The fact that this is happening at the beginning of September feels like a market signal that this month will indeed be bearish, and history is likely to repeat itself. Investors are advised to practice caution while making financial decisions. While this can be a hard time for investors, traders always find opportunities to make some profits.
