Will 2023 be a bearish year for Bitcoin?

 

Bitcoin has a history of going through cycles, with similar chart patterns, but different reasons behind the price movements. Despite claims that this time it's different, the charts don't lie. Currently, Bitcoin's two-week chart shows a bearish trend, causing concern among traders and investors about the cryptocurrency's future. This article will analyze Bitcoin's previous cycles to determine when the coin might bottom out and at what price. It will also examine why September could be a bearish month for Bitcoin.

Bitcoin's Historical Cycles:

Over the years, Bitcoin has experienced many cycles, but the charts always appear to show similarities. However, the reasons behind the price pumps and dumps vary. Presently, Bitcoin's two-week chart looks bearish, with the coin dropping from over $24,000 to just under $20,000, breaking essential support levels. Many traders and investors worry about the coin's future, asserting that Bitcoin has not yet reached its bottom.

September and Bitcoin:

September is historically the worst month for Bitcoin. Since 2013, seven out of the last nine Septembers have been bearishly red, with the last five years consecutively bearish. Bitcoin returns by month also show that September is the worst month for the cryptocurrency, typically performing poorly.

Possible Reasons for September Bearishness:

There are significant dates in September that could impact Bitcoin's price. On September 13th, the Consumer Price Index will release August's inflation numbers, an important reading as the markets want inflation to continue cooling, not rebound. The FED will announce their interest rate decision at the next FOMC meeting on September 21st. The FED has been increasingly hawkish in the past two meetings, raising the interest rate by 75 basis points. Jerome Powell spoke at Jackson Hole, discussing inflation and the economy, and how they were adjusting their policy to be restrictive and increase inflation.

Conclusion: Bitcoin has experienced many cycles, with September being historically the worst month for the cryptocurrency. September has significant events that could impact Bitcoin's price, such as the release of the CPI data and the FOMC meeting. Market watchers will be closely monitoring these events and hoping that Bitcoin's price won't be negatively affected.