September has always been a tough month for Bitcoin. History shows that BTC drops nearly 4% on average every September, earning the nickname “Red September.” This year is proving no different. Bitcoin has been hovering near the critical $108,000 level, with buyers trying to defend the zone. Yet, momentum indicators show weakness. The Relative Strength Index is slipping toward oversold territory, while the Average Directional Index signals no strong trend. Traders remain cautious, as Bitcoin looks stuck in consolidation, with both bulls and bears fighting for control.
Ethereum Feels the Pressure Too
Ethereum has followed Bitcoin’s lead in September. The coin tumbled below $4,300 after starting the month above $4,600. Just like BTC, Ethereum is showing signs of stress, with traders reducing exposure amid a fragile macro backdrop. Still, ETH is proving more resilient in fund flows, as investors continue to pour money into Ether-based exchange-traded funds. Spot Ether ETFs brought in $1.4 billion last week alone, far outpacing Bitcoin funds. While ETH’s price may be shaky, institutional demand signals that investors remain confident in its long-term role in the crypto ecosystem.
Bitcoin Charts Show Battle Between Bulls and Bears
Technical signals around Bitcoin remain mixed as September unfolds. The flagship crypto is still above its 50-day exponential moving average, which suggests a lingering bullish setup. However, the gap between the 50-day and 200-day averages is narrowing. If this trend continues, BTC could face a dreaded death cross, pointing to deeper bearish momentum. Meanwhile, volatility readings suggest recent swings may have already exhausted near-term energy. Traders on prediction markets are leaning bearish too, with 75% betting that Bitcoin will fall toward $105,000 before retesting higher levels.
Crypto Funds Attract Big Inflows Despite Price Weakness
While Bitcoin and Ethereum struggle on the charts, crypto funds are telling a different story. Last week, crypto exchange-traded products logged nearly $2.5 billion in inflows. Ether dominated with $1.4 billion, while Bitcoin funds pulled in around $748 million. Solana and XRP also saw strong inflows, fueled by optimism over future U.S. ETF approvals. Even with price drops, institutional investors are doubling down. Inflows for August reached $4.4 billion, while year-to-date flows stand at $35.5 billion—a 58% jump compared to the same time last year. This shows that while prices wobble, big money remains bullish on crypto’s future.
September Could Define the Market’s Next Move
The crypto market is now caught between seasonal weakness and strong institutional demand. Bitcoin and Ethereum are both under pressure, yet capital continues to flow into ETFs and funds. Much depends on the Federal Reserve’s September policy meeting, which could set the tone for risk assets. A rate cut would likely boost sentiment, while a hawkish stance could deepen Red September losses. For now, BTC and ETH face a crucial test. Traders are watching whether buyers can hold the line—or if this September once again confirms its reputation as crypto’s cruelest month.