Key Takeaways
Bitcoin closed August down 6.49%, snapping its mid-year recovery. Elevated miner flows and September’s weak seasonality keep the $100K support under threat.
Bitcoin [BTC] wrapped up August on a weak note, snapping its recent momentum with a sharp monthly decline.
Selling pressure from miners and fragile support levels increased the risk of deeper losses as the market entered September.
August’s red finish breaks Bitcoin momentum
Bitcoin ended August with a 6.49% negative return, halting its mid-year recovery and aligning with its tendency for late-summer weakness.
The drop stood out against July’s 8.13% gain, a sharp reversal in sentiment.
In fact, August has been negative in four of the past five years, with 2020 being the last strong green for the month.
Source: X
Naturally, this seasonal pattern has kept traders cautious about September’s prospects.
September, so far, has also been weak for Bitcoin (with a median return of -3.12%). The question now is whether the $100K support zone can withstand further selling pressure.
This is especially uncertain as Miner Flows and macro conditions continue to weigh on momentum.
Miner selling adds pressure to the correction
After August’s decline, Miner Flows came into focus, and the signals were bearish.
A recent CryptoQuant report showed elevated Miner to Exchange Flow, particularly into Binance, signaling stronger selling pressure.
After touching an ATH in mid-August, Bitcoin slid roughly 13% to around $108,700 by early September. Not to mention, the move lined up with profit-taking and miner liquidations.
Source: CryptoQuant
The April 2024 halving had already squeezed margins for smaller players, pushing many to offload coins just to stay afloat.
If this trend persists, the correction can deepen, especially with $100,000 now acting as a critical support level for traders.
