Bitcoin Loses 8.6% in August, Begins September with New 2-Week Low
Date: 2024-09-02 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Market conditions remain unfavorable, with one trader suggesting a "liquidity grab" could be in the offing.
Bitcoin lost over 2% on September 1, marking a nasty "off-hours" close to the month for bulls.
A Traditionally Red September for Bitcoin
According to Cointelegraph Markets Pro and TradingView, Bitcoin's weakening price has pushed it down to $57,230 on Bitstamp, a level last seen on August 16.
This mid-weekend decline, when liquidity is lower in the market, has resulted in a dismal close to the month, with buyers unable to prevent further losses.
Bitcoin thus ended August down 8.6%, below its average gain of 1.75%, according to CoinGlass. The data also shows that September is historically a bad month for BTC/USD, with average losses of 4.5%.
Trader Crypto Chase noted that the local level is “hard to hold” and suggested that it could eventually be broken. He also noted that bulls need to hold the $55.5-56.5K range or break above $61K. A loss of $55K, in his opinion, could lead to a drop to $51K.
Another trader, Exitpump, noted “aggressive” selling at the local lows of the day, citing BTC/USDT futures market data on Binance.
Rekt Capital analyst highlighted that Bitcoin continues to test the lower boundary of the channel on the weekly chart and a weekly close above $58,450 is needed to confirm this boundary as support.
Short Likely – Targets at $61,300
CoinGlass liquidity data reinforces the bearish sentiment, showing how the price has been going through layer after layer in its downward move in the last week of August.
Popular trader CrypNuevo suggested that both upward and downward “liquidity hunts” could occur this week. He noted that from a trading perspective, he would prefer to see a decline to liquidate positions at $56.6K to then initiate a long position.
