Bitcoin Shows Bearish Signals, Eyes $100K After August Losses
Bitcoin (BTC $108,638) is under pressure after a 6.5% decline in August, ending a four-month rally. Outflows from U.S.-listed spot ETFs reached $751 million, according to SoSoValue, highlighting waning investor confidence.
The cryptocurrency has broken several critical support levels, including the Ichimoku cloud, 50-day and 100-day SMAs, and horizontal supports near the May high of $111,965 and December high of $109,364, pointing to increasing downside risk.
Technical momentum indicators underscore the bearish sentiment. The Guppy Multiple Moving Average (GMMA) shows short-term EMAs crossing below long-term EMAs, while the weekly MACD histogram has fallen below zero, signaling a shift from bullish to bearish trends.
If the selling continues, Bitcoin could test the 200-day SMA near $101,366, with the $100,000 level looming as a key psychological target.
Seasonality Supports Bearish Bias
September has historically been weak for BTC. Since 2013, the cryptocurrency has averaged a -3.49% return in September, closing lower in eight of the past twelve years, according to Coinglass.
Bulls will need to push above the $113,510 lower high set on Aug. 28 to challenge this bearish outlook. Until then, technical and seasonal factors suggest that Bitcoin may remain under pressure heading into September.
