Bitcoin’s price slipped by 1.2% recently amid concerns about a potential major correction, driven by institutional selling and derivatives market pressure.
This event underscores seasonal patterns affecting BTC and ETH, with experts suggesting it could lead to a rebound following historical precedents.
1.2% Bitcoin Drop Linked to Institutional Selling
The recent 1.2% drop in Bitcoin prices raised concerns over potential market correction. Institutional selling and derivatives market pressures attributed to this price dip. Seasonal patterns of September remain a significant influence.
Institutional investors and derivatives have driven the price decline, with September marking a weak month historically. Major players like whale entities continue to accumulate, indicating long-term market confidence despite short-term volatility.
Market Volatility Spurs Investor Caution
Bitcoin and Ethereum prices witnessed a decline, sparking market-wide volatility and investor caution. Experts suggest the potential for rebound exists as market tensions ease, supported by whale accumulation and historical precedents.
Analysis indicates potential outcomes reflect past market dynamics, with September exits typical for institutions. Historical data and open interest levels introduce prospects for post-correction stabilization, setting foundations for a likely turnaround.
September Weakness: Average -3.77% Loss Since 2013
September’s historical weakness continues, with Bitcoin recording average -3.77% losses since 2013. Past instances in 2017 and 2021 showed similar corrections followed by robust recoveries, providing market participants with a framework for future behavior.
Experts lean on historical patterns to suggest short-term pain could lead to bullish outcomes. Long-term accumulation patterns and expert opinions highlight the market’s intrinsic resilience despite temporary dips and price corrections.
Yuri Berg, CEO, FinchTrade, “Many investment funds close their fiscal year in September, divesting losing positions for tax reasons, and rebalancing their portfolios” source.
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