Bitcoin is poised to end August with a double-digit loss despite a landmark victory in the Grayscale case in the US.
According to analysts, the cryptocurrency could remain stuck in a narrow range for most of September.
“If Bitcoin can make some progress, we could see price retesting the 29.5-30K resistance in the coming weeks,” Wolfe Research analyst Rob Ginsberg said in a note on Wednesday.
“We expect it to eventually break through this level and start a new high, but if we fail to successfully break through we will likely be discussing the important $25,000 support level once again.”
Ginsberg added that Bitcoin’s rallies this year have been driven by catalysts such as the Grayscale decision, which could open the door to greater institutional participation in the crypto space. “This further strengthens our long-term bullish view,” he said.
Fairlead Strategies’ Will Tamplin said the initial bounce was supported by positive signals from short-term indicators. Tamplin said this indicates that “Bitcoin will continue within the same trading range in the coming days.”
However, in the medium term, BTC may see further consolidation, similar to the May and June downtrends. Tamplin said it sees the next key level to test at $28,800. After that, $31,900 will be the level to watch.
“Also keep in mind that September has historically been a month of decline and volatility for equity markets, and crypto has mostly followed that pattern,” said Elliot Han of Cantor Fitzgerald.
Han reminded that Bitcoin’s biggest loss came in September 2019, before the 2020 halving event, and added:
“Any positive news regarding US regulations would be a positive, but other than ETF applications, nothing is expected. However, this does not mean that we will not encounter surprises on the upside or downside.”