Bitcoin (BTC) has been struggling to break the $50,000 mark for over 10 days now. However, on Sept. 2, the premium cryptocurrency briefly surpassed the milestone, sending positive ripples across the market. Since then, the token has dropped below the mark to trade in the $49,000 range before rebounding to hit the $50,000 mark yet again on Sept. 3.
As Bitcoin often behaves in a cyclical pattern, a look at the monthly trends for September could reveal patterns in the price, which in turn could be helpful to gauge the outlook for the upcoming month. Historically, September has been one of the more lackluster months for BTC. A look at the monthly price data since 2013 reveals that the token has posted positive gains in September twice in eight years — in 2015 and 2016 — with a maximum of 6%, which could be considered to be almost flat.
Pete Humiston, manager of Kraken Intelligence — the research department of the Kraken exchange — told Cointelegraph about what this trend could mean for this year:
“September is historically Bitcoin’s worst-performing month. That said, it has been verging on $50,000 for the past three weeks or so now. Should Bitcoin stage a breakout above this psychologically significant milestone, it could renew investor interest and spark the momentum needed to carry it all the way back to $60,000.”
In fact, BTC has posted red in September in four of the last five years, making it the bleakest period for the coin. However, the $50,000 mark is considered to be one of the significant resistance levels for this asset ever since it broke the barrier just days after Tesla’s CEO Elon Musk announced that the company had bought BTC worth $1.5 billion on Feb. 8, along with starting to accept Bitcoin as a payment method. The token briefly going past this resistance level at the onset of this month could be a positive sign for the asset.
Cointelegraph discussed the current scenario with Hunain Naseer, senior analyst at OKEx Insights — the research team at cryptocurrency exchange OKEx. He said, “As things stand today, BTC’s struggle under $50,000 is the big fight bulls need to win before we can look at $60,000. The move from $50K to $60K is likely to be much faster than the current move between $40K to $50K.”