Bitcoin (CRYPTO: BTC) could experience a significant correction in September, according to a prominent market commentator.
What Happened: Pseudonymous trader Dr. Profit said in a message in his private Telegram trading group that the next FOMC meeting in September could mark a turning point, with a major rate cut triggering the first meaningful correction since 2020 across both stocks and crypto.
Historically, real corrections come only after meaningful cuts, when uncertainty and divided opinions arise.
This cut is expected to trigger a strong correction across both stocks and crypto.
The Bitcoin chart is currently showing bearish signals, such as:
- A CME gap at ~$93,000 that needs to be filled.
- Liquidity clusters between $90,000–$95,000.
- A Double top pattern, dropping volume, with bearish divergences on the daily/weekly charts.
- Recent pumps led by futures traders, not spot buyers.
The on-chain data shows retail bought Bitcoin late ($110,000–$120,000+), while big wallets accumulated earlier around $98,000–$110,000. To flush out weak hands, Bitcoin likely drops to $90,000–$95,000, retail's max-pain zone, aligning with the correction narrative.
DrProfit sees the current euphoria and "alt season" hype as a bull trap.
While retail is rushing in, ETF inflows remain weak, signalling institutional distribution rather than accumulation. The liquidity being unloaded onto retail is masked by fake bullishness.
Also Read: Bitcoin Stumbles Below $111,000: How Low Can It Go?
Why It Matters: Since Aug. 18, the trader has rotated 10% of BTC/ETH profits daily into shorts.
His portfolio now sits at 60% cash plus shorts and 40% spot. Using 5x leverage, he is gradually scaling shorts, with plans to increase exposure if BTC climbs toward $124,000.
His roadmap: a September correction down to $90,000–$95,000, followed by a rally toward $145,000–$150,000 in Bitcoin and $7,000–$8,000 in Ethereum.
The goal, he says, is to end up with more coins by selling into strength and buying back lower.
"The September correction is the real opportunity," he concluded, adding that the current bullish sentiment is manufactured to trap retail.
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