Bitcoin’s journey into September has begun under considerable pressure following a tumultuous closure in August. The cryptocurrency, which reached a staggering all-time high of just over $124,000 in mid-August, has seen a stark shift as it faced three consecutive weeks of declines on the weekly chart. The bearish momentum has intensified, with the latest weekly candle closing near its lows, signaling a decisive advantage for sellers.
The technical indicators provide further insights into this downward trajectory. The Moving Average Convergence Divergence (MACD) oscillator has signaled a bearish cross on the weekly close, indicating sustained downward pressure as the week unfolds. Additionally, the Relative Strength Index (RSI) currently sits just above the neutral mark of 50, marking its lowest point since mid-April. This context suggests a precarious situation for bulls as Bitcoin nears critical support levels established during price consolidation periods from May to June.
Investors will be closely monitoring specific price thresholds this week. Bulls are hopeful the high-volume node around the $104,000 to $105,000 range will act as a robust support level, preventing the market from closing below that mark. In contrast, bears are poised to drive prices further down towards the significant 1.618 Fibonacci extension level set during the 2022 bear market, which stands at $102,000. If Bitcoin closes this week around or below that level, it would profoundly challenge the bullish outlook and position the asset perilously close to the psychologically significant $100,000 threshold.
Crossing below the $100,000 mark would lend credence to the hypothesis that the long-term peak may have already been established. Should the price dip further, with $96,000 identified as a vital line of defense for bulls, the market could face severe repercussions if support levels fail to hold.
As the market prepares for the first week of September, traders are looking for a potential reversal at the $105,000 level. The current conditions heavily favor bears, who are confident in maintaining their selling pressure into the new month. For now, bulls must rally to regain momentum and assert control in this highly volatile environment.
