Crypto finance platform Matrixport, citing its reverse seasonal analysis published a month ago, announced that they predicted the possibility of Bitcoin rising to $116,000 and that this prediction has now come true.
Matrixport: Bitcoin Reaches $116,000 Target, But Late Summer Correction May Be Coming
While emphasizing that market sentiment is becoming increasingly positive, the company highlighted three important developments that could increase volatility in financial markets this week:
- Financial results announcements concentrated on US stocks,
- The White House’s digital assets report was postponed,
- Interest rate decision of the US Federal Reserve (FED).
Matrixport notes that these factors could trigger a new wave of volatility in the market.
The report also noted that Bitcoin has entered a period of seasonal weakness. Data from the past decade has shown that August and September are among the weakest-performing months for Bitcoin.
It’s reported that the average return, particularly in August, is close to zero, with only three years of positive returns. Consequently, many investors are reportedly reducing their positions during this period, taking profits.
Matrixport maintains its optimistic outlook for the end of the year, but warns investors that a tactical correction may occur in the market in the short term.
*This is not investment advice.