Breaking the September curse, S&P hits new high, will Bitcoin see an Uptober after the pullback?

Yesterday marked the last trading day of September and the third quarter. Following Federal Reserve Chairman Powell's suggestion of a less aggressive rate cut, the U.S. stock market fluctuated in the final hours of trading. The major indices, Dow Jones Industrial Average and S&P 500, ended slightly higher, setting new records and concluding a strong performance for September and the quarter. This also broke the curse of almost all risk assets declining in September. As for Bitcoin, after being overbought, it experienced a pullback yesterday. Will this lead to the formation of a "coffee cup pattern" and usher in "Uptober"?

Powell Suggests No Aggressive Rate Cuts

Federal Reserve Chairman Powell indicated in a speech at the National Association for Business Economics last night that the overall U.S. economy is strong. Significant progress has been made in achieving the dual mandate of maximizing employment and maintaining price stability over the past two years. The labor market conditions are stable and have cooled off from previous overheating. Inflation has eased, and the Fed is more confident that the inflation rate will sustainably reach 2%.

He mentioned that if the economy develops broadly as expected, policy will gradually shift towards a more neutral stance over time. However, the Fed does not have a preset course and will continue to make decisions at each meeting.

Cryptocurrencies Experience Pullback, But Still Up in September

Unlike the rise in U.S. stocks, cryptocurrencies did not follow suit. Bitcoin fell yesterday from an early high of 66K to a low of 62,856, a drop of over 3%. Research firm 10x Research stated that this is a typical bullish pullback after being overbought. However, they still maintain a positive outlook for the fourth quarter, largely driven by expectations of another two-rate cut by the Fed and China's recent announcement of large-scale stimulus measures.

Is the sharp decline in Bitcoin not over yet? 10x Research warns of another drop in the next week

Some optimists believe that after breaking below the neckline, Bitcoin may follow the "coffee cup pattern" seen in U.S. stocks. This means that before a formal breakthrough, there will be a consolidation phase after completing the rounded bottom, forming a cup handle shape, and then breaking above the previous high.

Ethereum briefly fell below $2,600 yesterday, with a smaller decline.

Overall, Bitcoin rose over 7% in September, while Ethereum rose by 3.8%, breaking the curse of cryptocurrency declines in September.