Coinspeaker
Bitcoin (BTC) Teases Below Crucial Support Level Around $59K amid Rising Fear of Further Capitulation in September
The total crypto market cap dropped by around 7 percent in the past 24 hours, led by Bitcoin (BTC) and Ethereum (ETH), to hover about $2.16 trillion on Wednesday, August 28, during the mid-European session. The flagship coin had dropped over 6 percent in the past 24 hours to trade at about $58,820 at the time of this writing.
Ethereum led the altcoin industry in a bearish outlook, after sliding nearly 9 percent in the past 24 hours to trade at about $2,450 on Wednesday.
As a result, more than $323 million was liquidated from the crypto-leveraged market, with about $288 million involving long traders.
Historical Data Signals to Potential Bearish September for Bitcoin Price
More than 115 days since the fourth Bitcoin halving and the crypto bull market is yet to experience the parabolic phase. After registering a choppy market in the past five months, Bitcoin price is expected to continue in the same trend in September.
Furthermore, historical data analysis shows that Bitcoin price has largely performed poorly in the past 10 September, with only three bullish instances.
September has historically been the worst-performing month for Bitcoin.
In the past 10 years, we've seen a positive return just 3 times.
Will it be the same this time, or is this time any different? pic.twitter.com/2gn7xIeO5o
— Lark Davis (@TheCryptoLark) August 27, 2024
Nevertheless, the anticipated economic outlook shifts in the United States, following the recent dovish comments from Fed’s Chair Jerome Powell, has more crypto traders hoping for a bullish reversal during the fourth quarter.
Whales Accelerate Profit-Taking
After Bitcoin price action struggled to rally beyond the crucial resistance/support level of around $66K in the past few weeks, more whales have turned bearish. For instance, ARK 21Shares Bitcoin ETF (ARKB) registered its largest cash outflows of more than $101 million on Tuesday. As of this report, ARKB held about $2.88 billion in total assets under management.
In addition to the ongoing bleeding of Grayscale’s GBTC, the US-based spot Bitcoin ETFs registered a net cash outflow of over $127 million on Tuesday.
Meanwhile, on-chain data shows the pace of cash inflows into Bitcoin has significantly slowed down in the past six months. The low demand for Bitcoin has also coincided with the increased profit taking from short-term holders, whereby they deposited over 33K BTC units in the past few days.
The pace of net capital inflow into BTC has slowed down, indicating a balance between investors who are making profits and those who are incurring losses.
Typically, such periods of low activity precede significant spikes in volatility.
h/t @glassnode pic.twitter.com/OfKDYqjjDk
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 28, 2024
Midterm Targets
Bitcoin price is expected to continue in a choppy trend in the coming months, before the onset of the parabolic phase in the fourth quarter and 2025. The altcoin industry is expected to continue losing ground to Bitcoin, especially during the US election period when heightened volatility is anticipated.
#Matrixport 📉 Today – Aug 28: #Bitcoin drops sharply amid long liquidations—$59K in the spotlight for traders🚨. Are we on the brink of a bigger move? 👀#Matrixport #CryptoMarket #MarketTrends #CryptoFinance #BTC pic.twitter.com/9J1Lgro2kq
— Matrixport Official English (the only official X) (@Matrixport_EN) August 28, 2024
From a technical standpoint, Bitcoin price will likely revisit below $55k if it consistently closes below $59k in the near term.
