Historically, September has been a turbulent month for Bitcoin (BTC) enthusiasts, and this year might bring even more challenges, warns analyst Miles Deutscher. The cryptocurrency markets, especially Bitcoin and major altcoins, are entering this September under a cloud of macroeconomic uncertainty, regulatory questions, and impending token unlocks, creating a daunting landscape for bulls.
As we enter September 2023, the Bitcoin market seems apathetic and weary, grappling with what Deutscher describes as a “significant supply overhang.” This issue is exacerbated by delays in Bitcoin ETF verdicts, potentially spelling trouble for bullish investors.
Historically, September has been a painful month for Bitcoin, and this year is no different. In addition to market fatigue, traders must contend with the release of Bitcoin and various other cryptocurrencies previously seized by U.S. law enforcement agencies from the defunct exchange FTX. Furthermore, there are several massive token unlocks scheduled for September, including Apecoin (APE), Aptos (APT), dYdX (DYDX), and Optimism (OP).
A Challenging Environment for Bitcoin Bulls
In ordinary market conditions, this influx of sell pressure might be manageable. However, the low liquidity environment, combined with waning market interest, means that even a relatively small volume can significantly impact prices. Without a resurgence of interest, potentially via an ETF development, caution is the watchword.
The fleeting nature of Bitcoin’s recent price surge triggered by Grayscale’s legal victory serves as a stark indicator of market indifference. The euphoria lasted a mere two days before the Bitcoin price retraced to levels not seen since mid-June.
Key Dates to Watch Regarding Bitcoin
Aside from crypto-specific factors, Deutscher advises keeping a close eye on upcoming macroeconomic triggers. Specifically, he points to the release of the Consumer Price Index (CPI) on September 13 and the Federal Open Market Committee (FOMC) meeting on September 20. These events traditionally influence the prices of Bitcoin and major altcoins.
While caution looms large, Deutscher retains a glimmer of optimism. He anticipates that buyers will become interested in accumulating Bitcoin at certain price levels. Both $25,000 and $23,000 are seen as potential “levels of interest,” although he acknowledges that Bitcoin may dip even lower.
As of now, Bitcoin is trading at $25,833 on major spot exchanges, but the road ahead remains shrouded in uncertainty for crypto enthusiasts.