Analysis of the current situation in the Bitcoin market indicates a sharp rebound followed by a price decline, attributed to changing market sentiment and seasonal factors.
Sharp Rebound and Subsequent Drop
Bitcoin (BTC) posted a sharp rebound on Friday, gaining 3.91% to $117,300 after dovish commentary from the Jackson Hole symposium boosted risk appetite. However, this momentum quickly evaporated, and over the weekend, Bitcoin slid back to $110,600.
Support Data and Distribution Among Investors
Onchain data from Glassnode shows that all BTC wallet cohorts have shifted to distribution, indicating broad sell-side pressure. Notably, those holding between 10 and 100 BTC turned net sellers, while small holders (0–1 BTC) continue to accumulate. Analysts note that the $105,000 support level is crucial for price movements.
Seasonal Trends and ETF Fatigue
The current pullback also aligns with Bitcoin's seasonal tendencies. Historically, August to September has marked a period of weakness, coinciding with Asia's 'ghost month.' Reports indicate that since 2017, the average decline in Bitcoin during this period has been 21.7%. Analysts also point to fading enthusiasm for recent ETF efforts, which may have diminished the asset's bullish potential.
Analysis shows that current pressures in the Bitcoin market may lead to declines towards critical support levels. Seasonal factors and investor distribution complicate predictions regarding the cryptocurrency's future behavior.
