For Bitcoin (BTC) bulls historically, September is the worst month. According to expert Miles Deutscher, this time, things might get far worse. The crypto market will be challenged by a contentious macroeconomic climate, regulatory uncertainty, and significant “unlocks” of certain well-known tokens, including Bitcoin (BTC) and large-cap altcoins.
“We have to be wary”: Analyst on Bitcoin (BTC) in early Q4, 2023
The lethargic and disinterested Bitcoin (BTC) market will have to contend with a “significant supply overhang” in September 2023. According to analyst Miles Deutscher’s market view from yesterday, this might cause significant issues for bulls because of the delays in Bitcoin ETF judgements.
Analysts have noted time and time again that September has been painful for Bitcoiners. Along with market fatigue in 2023, investors should prepare for the release of Bitcoin (BTC) and several other cryptocurrencies taken by American law enforcement from the defunct exchange FTX. A number of significant unlocks are also scheduled to take place in September, including those for Apecoin (APE), Aptos (APT), dYdX (DYDX), and Optimism (OP).
Although these possible “sell walls” on large-cap cryptocurrency pairings might be readily absorbed in other circumstances, the situation in early Q4, 2023, appears too risky for bulls:
This sell pressure would be easily absorbed under normal market circumstances. However, in this climate of reduced liquidity, a price change does not require the same volume as it formerly did. Therefore, we need to exercise caution until market participants show signs of increased interest (perhaps through the creation of an ETF).
The strongest indication of market indifference towards Deutscher was the brief lifespan of the Bitcoin (BTC) surge caused by Grayscale’s legal victory. according to U.Earlier today, the excitement had barely persisted for two days before the price of Bitcoin (BTC) began to decline to levels not seen since mid-June.
Bitcoiners should care about Sept. 13 and Sept. 20
In addition to “crypto-native” catalysts, Deutscher advises keeping a careful eye on impending macroeconomic events. In particular, he advises focusing on the Federal Open Market Committee (FOMC) meeting on September 20 and the release of the Consumers Price Index (CPI) on September 13.
Both variables often have a positive or negative impact on the price of Bitcoin (BTC) and the main altcoins.
The analyst’s prognosis also exhibits cautious optimism, as he predicts that purchasers would be motivated to acquire Bitcoin (BTC) at a specific price. He considers both $25,000 and $23,000 to be “levels of interest,” but he also wouldn’t be shocked if Bitcoin (BTC) fell below any of those levels.
As of the time of publication, major spot markets are trading Bitcoin (BTC) for $25,833.
