I mentioned a few days ago that the price of cryptocurrency has always and historically dipped sharply in September, but I believe I received a few responses predicting a different outcome this time.
Unfortunately, we have not even reached the middle of September and the market has already taken a significant dip. BTC was around 53k years ago but has recovered to around 54k today; I believe this is just the first wave of the dip, and we could be heading to 48k.
Personally, I believe that if BTC can maintain the 45-48k price range until the end of September, it will be extremely beneficial to the market. However, if BTC can stabilize at 50k or slightly lower, it will be even better, but you never know.
On the other hand, I do not want to see the dip as a massive reaction to September; instead, I think it is the continuation of the downtrend we have been seeing for months, which means we have not healed, we have not seen the bottom, and we will not be able to go up until that happens.
However, it is the market's mechanism; September has never seen a good uptrend since 2013, and even in bull market years, there are always dips in September, so maybe it is just history, or maybe not; whatever it is, I believe we will bleed a little more before the bleeding stops.
Bad Month, Good History
On the other hand, if history repeats itself this September, it only means that the bull run is near. Many people have argued that there is no catalyst this year to propel the market, and that the instability in the Middle East, as well as global economic instability and the uncertainties that come with it, are all factors to consider; however, many people forget that COVID actually shut down the world in 2020.
The idea that people sat at home and did crypto in 2020 was completely false. Emotions ran dry during COVID, and people bled their fiat accounts to have physical cash in case Armageddon or the world came to an end.
Nobody was enthusiastic about anything during COVID, let alone cryptocurrency. People were mostly concerned with how to stay healthy, and because they could not go out, having cash on hand was essential for making small purchases. However, despite the uncertainty, the bull run occurred in 2021.
The Middle East and the global financial crisis would have no impact.
Again, the idea that NFTs were a catalyst in 2021 and we do not have any in this market is incorrect. The NFT was all hype and nothing tangible. The ETF itself is hype, just as the NTF was back then.
I know it is all different and we can not really compare, but hype works with human sentiment, which is where these two are similar.
The market deteriorates before improving; this pattern has remained consistent since 2013. So I do not think the market will start to change. I have seen people who are truly bearish, and I can not blame them; some are certain that the alts are done for this cycle, while others believe Hive may never see $1 in this market.
I would be bearish if I were them. Many people are unwilling to sell their stables because they do not want to risk their position for instability, but I assure you that many will regret not doing so.
On the other hand, people need to plan; there are still 23 days until the end of the month, and we could fall even further. There's no guarantee that October the beginning of Q4 will be the month crypto finally begins to go up. It could be October, November, or December, which is why stable coins are still required.
However, at the end of the day, the amount of liquidity you have when the market peaks determines how much profit you make. The market gives you exactly what you give it. Stay strong this rektember; the market may bleed more than you think.
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