Market Analysis

Bitcoin Faces Short-Term Decline Amid September Weakness and Mining Revenue Drop

Dupoin · 03 Sep45.5K Views

BTCUSD

Prediction: Decline

Fundamental Analysis:

Bitcoin is likely to encounter short-term downward pressure, as historically, September has been a challenging month for the cryptocurrency, averaging a return of -4.45%. In contrast, October typically sees stronger performance, with an average return of 22.90%, based on CoinGlass data. Bitcoin miners are facing significant difficulties; August saw a decline in total Bitcoin mining revenue to $8.5136 billion, the lowest this year, marking a decrease of $99.75 million from July, according to The Block. Analysts have highlighted that $56,000 represents a critical support level for miners, with Bitcoin recently touching a low of $57,128 on Monday.

Technical Analysis:

Over the weekend, Bitcoin fell below the immediate support level of $58,000, yet sellers were unable to push the price down to the crucial level of $55,724, suggesting stronger demand at lower price levels. Buyers will now aim to drive the price above the moving averages. A successful break above these averages could see Bitcoin rise to $65,000, though this level is anticipated to pose significant resistance in the short term, potentially keeping Bitcoin within a trading range of $55,724 to $73,777 in the coming days. Conversely, if the price falls below the 20-day moving average at $60,007, sellers may push the price down past $55,724. A sustained drop below this level could lead to a decline toward the August 5 intraday low of $49,000.

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