Analysts warn that Bitcoin range stagnation indicates a big move ahead

Despite another drop in crypto markets over the weekend, they have been largely contained over the past six months.

On September 2, chain analyst James Check said that Bitcoin’s “chopsolidation” is evolving.

He added that the swings are becoming larger and more sustained, but warned that the price range is becoming unstable.

“It screams to me that this price range is becoming ‘unstable’ and the market is ready to move elsewhere.”

The #Bitcoin Chopsolidation is evolving.

The swings are getting bigger and more sustained.

It screams to me that this price range is becoming “unstable” and that the market is ready to move elsewhere. pic.twitter.com/2YqerEIefs

— _Chess and checkmate 🟠🔑⚡☢️🛢️ (@_Escacmatey_) September 1, 2024

BTC Up or Down in September?

Some have suggested the big move could come in September, given the likelihood of an interest rate hike by the Federal Reserve. However, analysts have noted that September is historically bearish for Bitcoin.

Since 2013, BTC has posted positive monthly returns of +2.35%, +6.04% and +3.91% over three Septembers. However, there were losses ranging from -1% to -7.5% for the previous six, “Rekt Capital” noted.

The analyst concluded that Septembers tend to be months of consolidation with more chances of small downsides.

“Over the course of September, therefore, we’re more often seeing a low single digit and a low single digit up.”

September is really a down month #BTC?

Since 2013, $BTC recorded monthly returns of +2.35%, +6.04% and +3.91% over three September

And during September 6, BTC saw negative monthly returns ranging from -1% to -7.5%, with only two instances of double-digit declines (ie… pic.twitter.com/S4VZxh9t9s

— Rekt Capital (@rektcapital) September 1, 2024

Meanwhile, analyst Willy Woo looked at the distribution of Bitcoin on exchanges and noted that the inflow of BTC from the German and US governments and distributions from Mt.Gox is “slowly being absorbed”.

Leverage in crypto derivatives is also decreasing, which is a good sign, he said before adding:

“Overall, on the supply side, things have moved from bearish to neutral.”

On September 1, analyst “CrypNuevo” said there is a large liquidation pile at $57,000, very close to the 50% wick at $56,600, commenting on the liquidity using the liquidation heatmap of 7 days However, we may see a liquidity run to $61,300 first, he observed.

Bitcoin Price Outlook

Bitcoin declined over the weekend, moving from around $59,000 to the $57,000 support level. However, the asset recovered a bit to reach $57,500 during the Asian trading session on Monday morning.

Bitcoin ended the month of August with a loss of 8.6%. However, only those who bought BTC in 2024 would see a loss, James Check observed.

current #Bitcoin status report: pic.twitter.com/EFCegX708A

— _Chess and checkmate 🟠🔑⚡☢️🛢️ (@_Escacmatey_) September 1, 2024

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