Bitcoin (BTC) could potentially drop below $25,000 next month, according to Timothy Peterson, the founder and investment manager at Cane Island Alternative Advisors. Peterson, a well-known market observer, believes that there is a 50% chance of a dip to local lows in September. While Bitcoin bulls are trying to push the price above $30,000, several traders and analysts are predicting a downward trend.
Peterson bases his prediction on the typical August and September performance of Bitcoin. He uploaded a chart showing the monthly performance statistics for BTC/USD to X (formerly known as Twitter). Based on this chart, he concludes that there could be a “last big dip” before September ends, potentially causing the price to plummet by over 15%.
Commenting on this potential scenario, Peterson stated, “There is a 50% chance that bitcoin will drop below $25,000 before the end of September. This would be the last big dip before the next big bull run cycle commences.” The chart he shared illustrates the historical returns of BTC/USD during the months of August and September.
It is worth noting that September has historically been a challenging month for Bitcoin bulls. Since 2017, the price has consistently finished the month lower than its starting price. August, on the other hand, has produced mixed results, with both modest gains and losses.
Despite the anticipated dip, Peterson remains optimistic about Bitcoin’s long-term prospects. He predicts that BTC/USD will reach $100,000 within the next 1,000 days, based on the “Lowest Price Forward” metric. This metric accurately predicted Bitcoin’s last visit to $10,000 in September 2020.
Peterson encourages investors to have faith in Bitcoin, especially during bear markets. He wrote, “If you dismissed Bitcoin’s ‘Lowest Price Forward’ trend because of the dip in 2022, remember that Bitcoin’s price normally dips below the trend after a bear market. Bear markets are for waiting, not doubting. Bitcoin is less than 1000 days away from $100K.”
While these predictions offer valuable insights, it is essential to remember that they do not serve as investment advice. Every investment and trading decision carries risks, and individuals should conduct thorough research before making any decisions.
In conclusion, Timothy Peterson, a prominent market observer, predicts that Bitcoin could experience a significant dip below $25,000 in September. However, he remains optimistic about Bitcoin’s long-term potential, forecasting a price of $100,000 within the next 1,000 days. Investors should exercise caution and perform their own research before making any investment decisions.