Bitcoin Mirrors September 2023 Levels, Trader Curious If This Could Be 'Turning Point'

On-chain analysis firm CryptoQuant pointed out how Bitcoin's (CRYPTO: BTC) short-term Sharpe ratio has plummeted to levels unseen since September-October 2023.

Such periods have typically signaled substantial turning points in the market. For instance, a similar dip in the Sharpe ratio during September-October 2023 was followed by a considerable rebound in Bitcoin’s price.

CryptoQuant suggests that this could potentially present a risk-adjusted entry point for buyers. However, a bearish interpretation could see this as an indication of sustained volatility, advising against market entry until a clearer trend emerges.

Another crypto trader, TheScalpingPro, is curious about whether September is a bearish month for Bitcoin. The leading cryptocurrency by market cap has been stuck in a long consolidation phase for the past few months.

TheScalpingPro drew parallels to when the consolidation started in March; by September, prices started to recover.

"Over the next 7 months, Bitcoin pumped by 195%," he said, but remains uncertain if September will be the turning point again.  

Also Read: Bitcoin Vs. Altcoins Dominance: This ‘Unusual Cycle’ Is Getting ‘Harder And Harder To Play’

Why It Matters: Glassnode co-founder Negentropic tweeted that September is not likely to follow a bearish pattern.