Bitcoin (BTC) suffered a notable decline of 8.6% in August, with the cryptocurrency starting on a weak note in September. The price fell below $58,531 on September 1, marking a more than 2% drop on the first day of the month. This decline was exacerbated by a poor monthly close, leaving bulls struggling to stem further losses.
September’s Historical Weakness for Bitcoin
BTC price data from TradingView revealed that Bitcoin reached a low of $57,230 on Bitstamp, a level not seen since August 16. The typically thin trading volumes during the weekend contributed to the downward pressure, culminating in an August finish that underperformed its average gain of 1.75%. Historically, September has been unfavorable for Bitcoin, with average losses of 4.5%, a trend that appears to be continuing this year.
BTC/USD 1-hour chart. Source: TradingView
Market Predictions and Liquidity Concerns
Trader Crypto Chase indicated potential trouble ahead, stating that if Bitcoin fails to hold between $55,500 and $56,500, it could fall to around $51,000. Meanwhile, fellow trader Exitpump observed aggressive short selling at local lows as the weekly close approached.
BTC/USD monthly returns (screenshot). Source: CoinGlass
Rekt Capital noted that Bitcoin is currently testing the “Channel Bottom” on the weekly chart. For a positive outlook, Bitcoin would need to close the week above $58,450 to confirm this level as support.
Short Squeeze and Liquidity Hunts
Liquidity data from CoinGlass highlights the ongoing bearish sentiment, with Bitcoin slicing through multiple support levels in its recent decline. Trader CrypNuevo suggested that both upside and downside liquidity hunts could be in play this week. He recommended waiting for a potential drop to $56,600, where he plans to place a long order in anticipation of a price rebound. CrypNuevo also targets $61,300 for a potential upside liquidity grab.
