The performance of Bitcoin can be quite volatile from month to month, depending on the sentiment of investors in the market. With years of historical data available, investors and analysts often try to predict the next move of the cryptocurrency based on past performance.
As August comes to an end, Bitcoin investors are hopeful for a better month ahead. The month of August began on a positive note but saw several crashes as it progressed. The first week alone brought a 30% crash in the BTC price, leading to a market-wide downturn that particularly affected altcoins. While there has been some recovery since then, the price of Bitcoin remains below its starting point. At the time of writing, data from Coinglass shows that the Bitcoin price is down by 6.03% for the month of August.
Looking back at the data since 2013, it is evident that the Bitcoin price has had more red months than green months throughout its history. Out of the 12 years of available data, only four Augusts have closed in the green for the cryptocurrency. The positive closes have been observed during bull markets, such as in 2017 with a 65.32% increase, as well as in 2020 and 2021 with returns of 2.83% and 13.8%, respectively.
Historically, September has been even worse for the Bitcoin price compared to August. Out of 11 years, there have been 8 months with negative returns and only 3 months with positive returns. The average monthly return for September stands at -4.78%. With a poor performance in August, there are expectations that September could bring a reversal in fortunes. However, not everyone shares this optimistic view.
Crypto analyst @btc_charlie has warned that September may not follow the expected pattern. He cautions against blindly assuming a positive trend based on historical data and highlights the importance of considering all factors when making investment decisions. @btc_charlie points out that those predicting an upward trend may have missed the timing of the Bitcoin bottom and top. Instead, he suggests that investors should take a more comprehensive approach and look beyond historical data when analyzing the market.
While historical performance data can provide valuable insights into the behavior of Bitcoin prices, it is essential for investors to consider a wide range of factors before making decisions. The cryptocurrency market is highly volatile and influenced by a variety of external factors, making it crucial for investors to stay informed and adapt their strategies accordingly.