Bitcoin starts September in the red. Thus, short-term prospects are marked by uncertainty and caution.

In August, Bitcoin lost 8.6 % of its value. It reached its lowest level at the beginning of September. This downturn occurred in a market weakened

Bitcoin lost 8.6% of its value in August, reaching its lowest level at the beginning of September. This downturn occurred in a market weakened by reduced liquidity and heightened selling pressure. Investors and traders, accustomed to the roller coasters of prices, are searching for clues on the market’s direction in the coming days.

Bitcoin faced significant selling pressure during the last weekend of the month, dropping by over 2% on September 1. This fall, termed as “monthly close outside regular hours,” led the crypto to lows of $57,230, marking its lowest level since August 16. Less liquid market conditions contributed to this tough end of the month. Indeed, buyers were unable to support prices against a wave of massive sales due to low trading volumes.

September is traditionally tough for Bitcoin, with average losses of 4.5% according to CoinGlass data. This bearish trend was exacerbated by traders’ activities in the futures market, where “aggressive short sales” were particularly noticeable during the local lows. Prospects for support levels are pessimistic, with forecasts dropping to $51,000 if selling pressure persists. To avoid another plunge, Bitcoin must close the week above $58,450 to consolidate its support. Without this consolidation, the risks of a further drop are high. This is not the case currently, as Bitcoin stands at $54,456.04 this Sunday, September 8, 2024.

In the face of this instability, many traders opt for cautious strategies. They anticipate “liquidity grabs” movements both upward and downward. They warn that sudden fluctuations could occur in both directions during the coming week. From a trading perspective, they favor long positions but prefer to see an initial drop to reach liquidations and fill the wick at $56,600. This approach is based on the strategy that the market might first see a decline, attracting short-sellers, before bouncing back to higher resistance levels, such as $61,300, identified as potential targets for a bullish recovery.

Meanwhile, some analysts believe that stabilization above current critical thresholds could signal a short-term recovery. However, the risk of a new drop remains high, especially if market conditions continue to deteriorate.

Bitcoin starts September in the red. Thus, short-term prospects are marked by uncertainty and caution. Traders must therefore monitor technical indicators and support levels to guide their decisions. They need to be aware of potential risks. We hope that the September storm won’t be fatal to them.

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