Bitcoin has historically been bearish in September, and it looks like 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 area for two days. Since its decline began on August 26, this signals that September is likely to be another bearish month.
International stocks tremble
The main reason for Bitcoin's decline this morning was losses in the U.S. and Asian stock markets, where some major stocks fell by as much as 10%. Stocks tracked by the Nasdaq 100 and S&P 500 also saw losses of around 3.5%. In Asian markets, losses were seen not only in stock indices, but also in currencies and commodities. The cryptocurrency market often sees a decline when traditional markets start looking for losses.
Current state of Bitcoin
Bitcoin is currently trading at $56,751. It is trying to hold above the latest support zone around $56,600. If it fails to hold this level, Bitcoin may be forced to head towards $54,000. The Fear and Greed Index was recorded at 27 this morning, indicating bearish sentiment in the market. The RSI has dropped to 33.43, indicating that the bulls are losing strength.
Impact on Altcoins
The fall in Bitcoin’s price also caused altcoins to fall. The second-largest cryptocurrency, Ether, fell by 6.07%, while BNB, Solana, and Dogecoin saw falls of 4.29%, 6.13%, and 3.75%, respectively. Altcoins usually follow Bitcoin, and so we can see a 4.67% fall in the market capitalization of the entire cryptocurrency market, which now stands at $1.99 trillion.
Looking ahead
The fact that this is happening in early September feels like a market signal that this month will indeed be bearish and history is likely to repeat itself. Investors are advised to exercise caution when making financial decisions. While this may be a difficult time for investors, traders always find opportunities to make some profits.