According to data from CoinMarketCap, Bitcoin has had a tumultuous end to August, losing 7.75% of its market value in the past week. This price drop underscores the overall negative performance of the cryptocurrency market leader in the past month, with a month-on-month price decline of 10.64%. Interestingly, amidst this downtrend, the asset’s historical price data suggests that bears could maintain control of the market in the coming weeks.
September popular for negative returns, analyst says
IN post X on Friday, renowned cryptocurrency analyst Ali Martinez encouraged Bitcoin investors to prepare for what could be a “difficult” period in September. Based on historical price data, Martinez notes that Bitcoin typically posts cumulative negative results in September, as it has in eight of the past 11 years.
During this period, Bitcoin experienced an average and median price decline of 4.78% and 5.58%, respectively, in September. Therefore, investors could expect the leading cryptocurrency to trade in a range of $55,618 to $56,105 over the next four weeks.
Interestingly, this period of potential price loss could be an opportunity for massive BTC accumulation. According to Bitcoin’s monthly returns, the cryptocurrency market leader has previously achieved significant price gains in Q4, posting cumulative positive results in October for 9 of the last 11 years.
Meanwhile, November may be investors’ favorite month, as the last two bull cycles have seen net gains of 42.95% (2020) and 53.48% (2017). Overall, November shows a lot of potential for significant price growth, with an average price raise of 46.81% since 2013.
However, investors may want to exercise caution in December. While Bitcoin has previously seen gains of up to 46.92% (2020) in December, it has also seen significant losses of up to 34.81% (2013). Remarkably, in this final month of the year, the leading cryptocurrency has shown almost the same double-digit performance, recording an average price raise of 5.45% and a median price decrease of 3.59%.
Bitcoin Price Outlook
At the time of writing, Bitcoin is trading at $59,218, down 0.84% over the past day. Meanwhile, the asset’s daily trading volume has seen a 3.05% raise and is currently valued at $33.38 billion
According to the daily BTC chart, the cryptocurrency market leader is undergoing price consolidation, a breakout of which could result in a rally to the $65,400 price zone. However, data from the Relative Strength Index indicates that Bitcoin is far from its oversold zone and could be set for further losses. In that case, investors could brace for a potential drop to around $53,800.
BTC is trading at $59,230 on the daily chart | Source: BTCUSDT chart on Tradingview.com
