Bitcoin is on track to close August in the red, sparking concerns of a deeper downturn in September, a historically bad month for the cryptocurrency. Analysts point to the “September Effect,” with Bitcoin often sliding this month. However, patterns from past years suggest a potential rally to retest the record high in 4-6 weeks.

Market veterans anticipate a September dump, but analyst Rekt Fencer disagrees, citing similarities between Bitcoin’s 2017 and 2025 performance. The current chart pattern mirrors 2017, hinting at a potential reversal and another parabolic leg upward. Bitcoin’s price hovering near key support levels could be the launchpad for a significant move.

A weaker dollar could benefit Bitcoin bulls in September, as currency traders turn bearish on the greenback due to a slowing US economy and expected Fed rate cuts. The 52-week correlation between Bitcoin and the US Dollar Index is at its weakest in two years, improving the odds of a crypto market climb if the dollar continues to slide. Analysts predict a potential influx of trillions into the crypto market, leading to explosive growth in altcoins.

Read more at Cointelegraph: Will Bitcoin Price Drop Again in September?