Throughout history, September has often proven to be a challenging month for Bitcoin (BTC) enthusiasts, marked by significant price declines. This time around, analyst Miles Deutscher suggests that the situation could be even more challenging. The crypto markets, particularly Bitcoin (BTC) and prominent altcoins, will grapple with a contentious macroeconomic backdrop, regulatory ambiguity, and substantial “unlocks” of certain widely-used tokens.
“We have to be wary”: Analyst on Bitcoin (BTC) in early Q4, 2023
As of September 2023, the Bitcoin (BTC) market appears lethargic and disinterested, facing the challenge of a “significant supply surplus.” Compounded by the delayed verdicts on Bitcoin ETFs, this situation could pose considerable challenges for bullish investors, as noted by analyst Miles Deutscher in the market outlook released yesterday.
As analysts have observed consistently over the years, September has often been a challenging month for Bitcoin enthusiasts. In 2023, in addition to market fatigue, traders should anticipate the release of seized Bitcoin (BTC) and various other cryptocurrencies held by U.S. law enforcement agencies from the defunct FTX exchange. Furthermore, several substantial token unlocks, including Apecoin (APE), Aptos (APT), dYdX (DYDX), and Optimism (OP), are scheduled for September.
Under normal circumstances, markets might easily absorb these potential “sell walls” in large-cap altcoin pairs. However, as we enter early Q4 of 2023, the situation appears precarious for bullish investors.
The brief duration of the Bitcoin (BTC) surge following Grayscale’s legal victory served as a clear signal of market indifference, according to Deutscher. As previously reported by U.Today, the excitement fizzled out in just two days, with the Bitcoin (BTC) price retracing to levels not seen since mid-June.
Bitcoiners should care about Sept. 13 and Sept. 20
In addition to factors originating within the crypto realm, Deutscher advises close attention to upcoming macroeconomic triggers. Specifically, he suggests keeping a keen eye on the release of the Consumer Price Index (CPI) on September 13 and the Federal Open Market Committee (FOMC) meeting on September 20.
Traditionally, both of these indicators have the potential to influence the prices of Bitcoin (BTC) and major altcoins in various directions.
Simultaneously, the analyst’s outlook displays a sense of cautious optimism. He anticipates that buyers may show interest in accumulating Bitcoin (BTC) at specific price levels. Both $25,000 and $23,000 appear to be notable “points of interest” to him, though he also acknowledges the possibility of Bitcoin (BTC) declining further.
As of the current moment, Bitcoin (BTC) is trading at $25,833 on major spot exchanges.