Bitcoin is entering a traditionally challenging period as global stock markets experience significant volatility. According to traders, the cryptocurrency must maintain its price above $60,000 to reach new all-time highs.
Bitcoin Price Steadies Amid Market Sell-Off
Data from TradingView indicates that Bitcoin bounced from fresh two-week lows of $62,235 on August 2. Despite this rebound, Bitcoin is flirting with a breakdown toward $60,000 as risk assets fluctuate at the start of the month.
BTC/USD one-hour chart. Source: TradingView
Stock markets worldwide are undergoing an extended sell-off. Japan made headlines on August 1 when the Nikkei fell 6%, marking its most significant single-day drop since the global stock market crash of 1987, known as “Black Monday.” While the crypto market has not mirrored this volatility to the same extent, concerns about Bitcoin’s immediate future persist.
Historical Trends Suggest Tough Months Ahead
Traders note that historically, the second half of Q3 has been a difficult period for Bitcoin. Data from the monitoring resource CoinGlass highlights that both August and September have been “red” months in recent years. In August 2023, a flash downtrend briefly took Bitcoin’s market to $25,000, a low that has held since.
NIKKEI 225 vs. BTC/USD on-day chart. Source: TradingView
Popular trader Jelle commented on this trend in a recent X post, noting, “Bitcoin closed July in the green, gaining 2.95%. Historically, the market tends to struggle in the remainder of Q3 but really starts moving higher once October comes around. Let’s see what we get this time around.”
Key Support Levels and Future Predictions
Michaël van de Poppe, founder and CEO of trading firm MNTrading, identifies the key support test at $60,000. He believes that holding this level is crucial for Bitcoin to continue towards an all-time high. He echoed other theories circulating on social media, predicting, “Bitcoin needs to hold above $60-61K and then we’re going to be seeing a continuation towards the all-time high. Historically, August & September are bad, however, I’m expecting that from mid-August the momentum starts to change. New ATH in September/October.”
BTC/USD chart. Source: Jelle
Potential for a Breakout
Despite concerns over lower highs and lower lows on daily timeframes since Bitcoin’s $73,800 all-time high in March, some traders remain optimistic. Jelle remains unfazed by the months of consolidation and support retests, stating, “Bitcoin is still trading inside the channel we’ve spent the past months inside of, but holding above key supports. Looks like a breakout is getting closer by the day. Patience, until then.”
As Bitcoin navigates this turbulent period, all eyes are on whether it can hold critical support levels and potentially achieve new highs in the coming months.
