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Managing Editor’s Note: Today, we’re hearing from our contributing editor Mike Burnick in his weekly feature.
Mike has over 30 years in the investment and financial services industry – from operating as a stockbroker, trader, and research analyst, to running a mutual fund as a registered investment advisor and portfolio manager, to being Research Director for the Sovereign Society, specializing in global ETF and options investing.
And he’s been senior analyst at TradeSmith for three years, running Constant Cash Flow, Infinite Income Loop, and Inside TradeSmith.
Here’s Mike…
Bitcoin Bulls Should Watch for a Pullback
BY MIKE BURNICK, CONTRIBUTING EDITOR, MARKET MINUTE
Last week I covered the unfolding seasonal slump for stocks according to our Trade Cycles indicators. See below.
But stocks aren’t the only asset class that runs into seasonal headwinds at this time of year.
You can also spot negative seasonal trends in alternative assets including gold and Bitcoin.
Gold had a spectacular run higher early in 2026, but then the trend reversed sharply, falling 26% between January and July.
Bitcoin too caught fire recently, up almost 40% in just over one month!
But if you’re thinking of hopping aboard the Bitcoin train now, you may want to think again.
That’s because our Trade Cycles expect a seasonal slump for the cryptocurrency.
The chart above shows a seasonally bearish pattern for Bitcoin that began mid-August and runs through September 26. Bitcoin has been down 70% of the time during this period over the last 10 years, with an average return of -6.83%.
Not a good time to be a Bitcoin bull!
Bottom line: The good news, for those with patience to wait out a pullback, is that Bitcoin seasonality turns bullish again in October, according to our Trade Cycles indicators. Historically, the cryptocurrency is up 18.7% in October with a 100% accuracy rate in the past 10 years!
Good investing,
Mike Burnick
Contributing Editor, Market Minute