September has started with significant losses for the Bitcoin market after a price decline of 9.16% occurred in the last week based on data from CoinMarketCap. During this period, the price of the largest cryptocurrency has dipped below $53,000 reaching a price low last seen in early August. Interestingly, despite Bitcoin’s low prices, investors are showing an unusual drop in buying interest.
Investors Hold Back On Bitcoin Accumulation – What Could Be Behind It?
In an X post on Friday, Ali Martinez noted that the Accumulation Trend Score (ATS) for Bitcoin was nearing zero. For context, the ATS measures the balance between accumulation and distribution activities in the Bitcoin market. As explained by Martinez, a score nearing 0 suggests that BTC investors are either offloading their holdings (distributing) or actively purchasing (accumulating) the premier cryptocurrency.
This trend, which represents a decline in buying interest, can be interpreted as unusual amidst Bitcoin price loss, which provides an opportunity for token accumulation at lower prices using dollar cost averaging strategies. A possible reason for this decline in ATS could be investors believe the BTC market is yet to bottom out, which will provide an attractive point of entry.
Interestingly, co-founder of Bitmex, Arthur Hayes, has predicted Bitcoin could likely fall below $50,000 this weekend amidst its present downtrend. However, Hayes has provided no specific support level for the crypto asset.
What’s Next For Bitcoin?
Generally, Bitcon’s bearish start to September is largely unsurprising following the token’s previous performances where it recorded an average loss of 4.78% in the last 11 years. With a decline of nearly 10% in the first week, it is possible Bitcoin will experience a total double-digit loss by month’s end as in 2014 and 2019.
However, the latest data from Non-Farm Payroll shows an increase in US jobs by 142,000 as well as an employment rate of 4.2%. Based on these figures, Citi analysts have previously predicted the US Federal Reserve could implement a 25 to 50 basis points rate cut at its meeting on September 18.
If such a prediction proves true, Bitcoin could receive a price boost in the final weeks of September, leading into October, when the crypto market leader is expected to produce a double-digit price gain according to historical price data.
At the time of writing, Bitcoin was trading at $53,855 with a 4.13% decline in the last 24 hours….
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