Bitcoin slips to $59,000 again – Is a bigger crash coming in September?

Bad news for Bitcoin fans: Despite the fourth Bitcoin halving in April, the crypto pioneer has yet to enter a parabolic phase. On the contrary, the token has dropped to $59,000. Will this downward trend continue in September?

Led by Bitcoin and Ethereum: Entire crypto market drops by 7 percent

Anyone expecting a swift uptrend in the crypto market was disappointed on the night of August 27 to 28. The total crypto market capitalization plummeted by seven percent, led by Bitcoin and Ethereum. Bitcoin hit a low of around $58,200 shortly after midnight, marking a 5.8 percent drop in the past 24 hours. It has since recovered slightly to around $59,200.

Bitcoin slips to $59,000 again - Is a bigger crash coming in September? — Crypto market cap total. Source: TradingView

Ethereum is also struggling. With an even sharper decline of 8.11 percent in the last 24 hours, the altcoin is currently valued at around $2,400. Earlier this month, ETH was still trading at around $3,300. Overall, more than $323 million was liquidated from the crypto market following the crash.

Bear market instead of bull market: Historical data points to a bearish September

Analysts are predicting a bear market in September. This forecast is supported by a look at Bitcoin’s historical data. Over the past ten Septembers, the cryptocurrency has generally performed poorly, with only three bullish phases. Lark Davis highlighted this on the social media platform X, showing that February has typically been the strongest month, while August and September have consistently underperformed.

September has historically been the worst-performing month for Bitcoin.

In the past 10 years, we've seen a positive return just 3 times.

Will it be the same this time, or is this time any different? pic.twitter.com/2gn7xIeO5o

— Lark Davis (@TheCryptoLark) August 27, 2024

In the medium term, the market is expected to remain volatile before stabilizing. The next parabolic phase may not occur until the fourth quarter of this year or early 2025. However, if Bitcoin stays below $59,000 for an extended period, a deeper crash could be on the horizon. It remains to be seen how the market will evolve, especially with the upcoming U.S. presidential election in mind.