Bitcoin May Face Continued August Pressure Amid Key Support Levels and Historical Trends

• Bitcoin dropped 5% over the weekend, testing key support near $112,000.

• August has historically been a bearish month for Bitcoin, with an average loss of 11.4% since 2013.

• IG Markets analyst Tony Sycamore highlights risk sentiment and macroeconomic factors as key to Bitcoin’s near-term price action.

Bitcoin faces a bearish August start, needing to hold $110,000 support to retest highs. Stay informed with COINOTAG’s latest crypto insights.

Why August Is Historically Bearish for Bitcoin

August has consistently been a challenging month for Bitcoin prices. Since 2013, BTC has recorded declines in eight out of twelve Augusts, with an average loss of 11.4%. In 2024, Bitcoin fell 8.6%, dropping to just above $59,000. This trend suggests that if history repeats, BTC could slip to around $105,000 this August.

What Are the Key Support Levels Bitcoin Must Hold?

Bitcoin’s recent pullback tested the critical support zone between $110,000 and $112,000, which held firm during the weekend decline. Analyst Tony Sycamore notes that maintaining this support is essential for Bitcoin to attempt a retest of its all-time high near $125,000. However, breaking below this range could trigger a deeper correction toward the 200-day moving average at approximately $99,355.

How Do September Trends Affect Bitcoin’s Outlook?

September has mirrored August’s bearish tendencies, with losses recorded in eight of the past twelve years. The last positive September was in 2021 during a bull market, when Bitcoin gained 13.8%. Given the current four-year market cycle, 2025 is anticipated to be bullish, offering potential relief from these seasonal downturns.

What Macro Factors Influence Bitcoin’s August Performance?

Macroeconomic pressures, including US jobs data and tariff developments, heavily influence Bitcoin’s risk sentiment. Sycamore emphasizes that if risk appetite weakens further, Bitcoin could face extended corrections. Expert Arthur Hayes also warns of downward pressure potentially dragging BTC toward the $100,000 level amid these uncertainties.

Frequently Asked Questions

What historical patterns affect Bitcoin’s price in August?

Bitcoin has historically declined in August eight out of twelve years, with an average loss of 11.4%, making it a typically bearish month influenced by market cycles and economic events.

How does risk sentiment impact Bitcoin’s price movements?

Risk sentiment, shaped by economic data and geopolitical events, directly affects Bitcoin’s price. Positive sentiment supports price stability, while negative sentiment can lead to sharp declines.

Key Takeaways

• August is historically bearish for Bitcoin: Average losses of 11.4% since 2013 highlight seasonal risks.
• Critical support levels: Maintaining $110,000-$112,000 is essential to avoid deeper corrections.
• Macro factors matter: Economic data and risk sentiment heavily influence BTC price action in August.

Conclusion

Bitcoin’s bearish start to August aligns with historical seasonal trends, emphasizing the importance of the $110,000 support zone. While macroeconomic uncertainties pose risks, the approaching bull market cycle in 2025 offers potential for recovery. Investors should monitor key levels and economic indicators closely to navigate this volatile period effectively.