Bitcoin (BTC) Ends August on a Sour Note, September Brings New Challenges

Bitcoin (BTC) ended August on a sour note, losing 8.6% as the month closed with a fresh two-week low. The drop continued into September, with BTC price weakness pushing

Bitcoin (BTC) price ended August on a sour note as the month closed with a fresh two-week low, losing 8.6%. The drop continued into September, with BTC price weakness pushing the cryptocurrency below $57,500 on Bitstamp, a level last seen on Aug. 16.

BTC/USD 1-hour chart. Source: TradingView

The weekend’s less liquid conditions made for a grim monthly close, with buyers unable to prevent further losses.

Consequently, Bitcoin finished August down 8.6%, below its average of 1.75% gains, per data resource tracker CoinGlass.

Historically, September has been a challenging month for Bitcoin, with average losses of 4.5%. This year is no exception, as BTC/USD stares down a potentially bearish month.

Experts Are Cautious of Any Surprise Corrections

Traders are eyeing potential liquidity grabs, with some predicting a push into local lows before any relief for bulls. Short squeeze odds target $61,300, while others see the mid-$60,000 range as a short-term target.

Popular trader Crypto Chase noted, ” Bulls want to see 55.5-56.5K hold or decisive PA above 61K.~ Losing 55K likely means 51K.~ Been patient over the past week, don't believe I've missed much. Waiting for higher confidence trades.”

$BTC Local level taking a beating, wouldn't be surprised if it gives way eventually. Bulls want to see 55.5-56.5K hold or decisive PA above 61K~. Losing 55K likely means 51K~.Been patient over the past week, don't believe I've missed much. Waiting for higher confidence trades. pic.twitter.com/cME09gCMlL

While analyzing the weekly BTC chart, Rekt Capital made a stern observation.

#BTC Bitcoin continues to retest the Channel Bottom

Bitcoin needs to Weekly Close above $58450 to confirm the Channel bottom (black) as support

Retest is still in progress$BTC #Bitcoin https://t.co/4tbcFtQEuF pic.twitter.com/juOeY0Tvta

CoinGlass liquidity data gave more weight to the bearish narrative, with price slicing through layer after layer in its downward dive over the final week of August.

BTC liquidation heatmap (screenshot). Source: CoinGlass

CrypNuevo suggested in an X thread that both upside and downside liquidity hunts could come this week, as he went ahead to give the target for a potential upside liquidity grab as $61,300.

In a trading perspective, I'm favoring longs so I'd prefer seeing the move down first to hit the liquidations and fill the wick at $56.6k where I could long.

So I'm keeping a long order at that $56.6k level on Sunday & Monday in case we see a false move at the start of the week.

Reaccumulation Range Nears End

Bitcoin begins September on a weak note, with monthly and weekly closes triggering a decline in the BTC price. Currently trading at around $60,000+, BTC is showing a lack of upward momentum, as market analysis reveals a lack of enthusiasm among traders.

Will this month repeat the pattern of the previous September, which has historically been challenging for Bitcoin? September has a reputation for being a difficult month for BTC, with prices often experiencing a downturn.

September marks the deadline for Bitcoin’s post-halving “reaccumulation range” to be completed. This period, which has been in place since May 2020, is a key phase for Bitcoin price action, and its conclusion could set the stage for a new market phase, Rekt Capital summarized in an X thread.

BTC/USD 1-hour chart. Source: Skew

Bitcoin failed to impress around the latest monthly close, and conditions have remained tenuous. Data from TradingView shows that bulls have been powerless to overcome sell-side pressure, which popular trader Skew shows has characterized low-timeframe market conditions in his analysis shared in X.

$BTC Market Flow Update

$BTC Binance Spot

Since my previous tweet where I mentioned that risk was taken off books of firms also known as selling positions with a positive delta this has so far had a supply impact on price with each LTF bounce being matched with passive supply… pic.twitter.com/V2aweWxweK

Data from CoinGlass meanwhile shows the bulk of bid support clustering around $56,750 as of writing.

BTC/USD monthly returns (screenshot). Source: CoinGlass

Other traders saw the potential for a push into local lows before any relief for bulls, with estimates including $56,00