Recent data shows Bitcoin experienced a 5% decrease over the weekend, raising questions about its ability to hold its support level.
Bitcoin Support Level
Bitcoin fell from around $118,330 on Friday to $112,300 on Sunday. This drop has been characterized as a negative start to a historically bad month for Bitcoin. IG Markets analyst Tony Sycamore reported that much will depend on how overall investor sentiment holds after the recent U.S. jobs report and new tariff developments. He noted, "If risk sentiment stabilizes and Bitcoin remains above the $112,000/$110,000 support, it can retest the record high. However, just above here is significant monthly resistance at $125,000, and I don’t see the catalyst for that to break right now."
August as a Bear Month for Bitcoin
In recent years, Bitcoin has shown a tendency to decline in August. Historically, since 2013, Bitcoin prices have typically registered a monthly decline in this period. In 2024, the asset shed 8.6%, falling slightly above $59,000. In 2023 and 2022, Bitcoin also recorded double-digit losses, dropping to $27,300 and $19,800, respectively. The average loss in August has been 11.4%, so if history repeats itself this month, Bitcoin could drop to around $105,000.
September May Also Be Negative
The outlook for September also appears unfavorable. Eight out of the last twelve Septembers have historically seen losses for Bitcoin. The last time there was an August gain was during the bull market of 2021 when Bitcoin increased by 13.8%. If current trends persist, similar outcomes are expected for September.
In current conditions, Bitcoin faces significant market pressure, and its ability to hold the support level is in question. Analysts recommend closely monitoring investor sentiment in the coming months.
