"Red September" is just around the corner... the historical pattern repeats! 📉
As the end of August approaches, #Bitcoin enters a sideways trading range while traders begin to prepare for September, known for its recurring negative performance in financial markets, especially in the world of cryptocurrencies.
📊 Facts and Figures:
- Since 2013, #BTC has experienced declines in 8 out of 10 September months, with an average drop of nearly 4%.
- The S&P 500 also records its worst annual performance in September in decades.
🔍 Why does September turn red?
- Closing of the financial year for investment funds → realizing profits and tax losses.
- The return of institutional traders from summer vacations and rebalancing of portfolios.
- Increased issuance of government bonds → pulling liquidity from risky assets.
- Anticipation of central bank meetings (like the #US Federal Reserve) → freeze in investment decisions.
⚡ Why is the crypto market so heavily affected?
- Trading 24/7 and the relative low market capitalization make it more sensitive.
- The leverage effect of derivatives (futures and options) that could lead to a mass liquidation of positions.
- Whales and institutions selling to cover margins or reduce risks in traditional assets.
🛡️ How to prepare?
- Monitor selling indicators as August comes to a close (increased deposits on exchanges, pessimistic tone on social media).
- Implement a risk management strategy (stop-loss, avoid high leverage trading).
- Prepare for potential buying opportunities if sharp corrections occur.
Summary: Red September is a real test of market psychology... Will the historical pattern break this year or will we witness another chapter of declines?
