Why Now Is the Perfect Time to Purchase Bitcoin
Investors have expressed concern over the lackluster performance of Bitcoin (BTC) in September. Many have even opted to exit the market before the summer break, adhering to the adage “Sell in May and go away.” However, it appears that the end of September presents an opportune moment to refocus on the broader cryptocurrency and BTC market.
A prominent cryptocurrency market analyst, known as CryptoBirb, recently published a brief analysis on the historical returns generated by BTC in subsequent months of the year. According to this analysis, September, historically the weakest month, serves as the best opportunity for market returns. October and November follow as the two statistically most profitable months.
CryptoBirb: September Is a BTC Buying Opportunity
The latter part of September provides an excellent opportunity to buy Bitcoin. Historical statistics reveal that September is the only month of the year that has resulted in losses when considering the entire available history of BTC trading. Therefore, CryptoBirb asserts:
“The second half of September is an insanely good opportunity to buy Bitcoin.”
It’s important to note that the analyst acknowledges this argument does not guarantee the best possible “buy the dip” opportunity during the current week. Instead, it is a thesis based solely on statistical data and does not provide any concrete predictions regarding future price actions.
However, history often repeats itself, particularly in the cyclical Bitcoin market. Therefore, when examining the statistics of the consecutive months of October and November, CryptoBirb confidently identifies them as the most opportune times to establish long positions on BTC.
Fourth Quarter of the Year: Biggest Returns for Bitcoin
Coinglass, an analytics platform, offers statistics that support CryptoBirb’s thesis. They provide detailed information on profit and loss in the BTC market across various time frames, ranging from daily to quarterly.
First and foremost, it is worth noting that the fourth quarter of each year (October-December) has consistently proven to be the most profitable. On the other hand, the third quarter (July-September) consistently proves to be the least profitable. Given this interval, it becomes evident that the end of the third quarter presents the best opportunity to buy BTC. This aligns with the ongoing final weeks of September.
Looking specifically at monthly returns for Bitcoin trading, CryptoBirb’s observations indicate that September tends to be the least profitable month of the year. In only two years, namely 2015 and 2016, did the month yield modest profits of 2.35% and 6.04%, respectively.
Contrastingly, the following two months show a different picture. October has only closed in the red twice so far: in 2014 (-12.95%) and 2018 (-3.83%). November, however, has experienced losses on four occasions: in 2018 (-36.57%), 2019 (-17.27%), 2021 (-7.11%), and 2022 (-16.23%).
Although November frequently yields losses, it historically delivers the largest profits. Hence, the second-to-last month of the year is statistically the most lucrative. Nonetheless, more conservative investors may prefer to focus on October, which generates smaller but more consistent profits and rarely incurs minimal losses.
Past Performance vs. Future Results
Based on the aforementioned data, CryptoBirb’s analysis proves accurate. The final days of September could present an excellent opportunity for purchasing Bitcoin, particularly because it seems that the long-term bear market has come to an end with the conclusion of 2022.
However, it’s crucial to bear in mind the maxim: “Past performance is not indicative of future results.” Historical data serves as a valuable source of knowledge and provides insight into the market. Nevertheless, within the complex ecosystem of financial markets, historical data is only one component among many and is not necessarily the most significant.
For the latest crypto market analysis from BeInCrypto, click here.
In accordance with the Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting; however, market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
Editor Notes: Uber Crypto News
Looking for the latest news and insights on cryptocurrency? Visit Uber Crypto News for all the up-to-date information on the crypto market. Stay informed and make the most of your investment opportunities!