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Bitcoin (BTC) price performance in August saw the largest cryptocurrency lose 8.6%, exacerbating bearish sentiment in the market since hitting an all-time high of $737,000 in March of this year. Since then, Bitcoin has been unable to consolidate above key levels.
However, this may not be the end of the bearish momentum, as a recent analysis from research firm CryptoQuant suggests that the downtrend will continue into September.
September will be a challenging month for Bitcoin.
According to According to CryptoQuant, September’s outlook looks to be a similar challenge for Bitcoin. Their latest analysis highlights August’s performance, which was marked by what they call “Bank of Japan collapse“In early August, the token’s price dropped to a six-month low of $49,000, leaving BTC unable to recover above the $65,000 level since then.
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Additionally, historical data indicates that September is typically bearish Bitcoin has been on a downward spiral in September, with six of the last seven Septembers closing in the red, with an average loss of around 4.5%. The firm believes that if this trend continues, Bitcoin could fall to around $55,000 by the end of the month.
Despite the pessimistic outlook, CryptoQuant believes the situation may not be as bad as it seems. They expect Bitcoin to find “strong support” around the $54,000 level, the price it successfully bounced from in July before surging towards $70,000.
Long-term confidence index
In the coming days, the company warned to monitor this week. Economic dataespecially the September 5 jobless claims report and the September 6 non-farm payrolls (NFP) data.
However, CryptoQuant notes that there is a moderate expectation regarding the impact of these macroeconomic metrics on cryptocurrency prices, noting that their impact has diminished in recent weeks.
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Moreover, volatility curve Bitcoin price action is expected to pick up as short-term volatility declines. Interestingly, there is evidence that the bullish sentiment is continuing in the medium term despite the recent pullbacks, with traders exchanging long call options on both Bitcoin and Ethereum (ETH).
For example, a notable purchase of a 200x Bitcoin call option expiring in March 2025 with a strike price of $120,000 increased open interest to 2,100 contracts. This suggests that despite current conditions, Market conditionsThere is still a strong belief among some investors that Bitcoin will rise in value over the long term.
At the time of writing, the largest cryptocurrency on the market is trading at $58,400, down 0.2% over the past 24 hours and 5.5% over the past 30 days. Despite ongoing price corrections, CoinGecko Data It shows that BTC is still up 126% since the beginning of the year, making it one of the best performing coins.
Featured image by DALL-E, chart by TradingView.com
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