Bitcoin targets $54,000 amid volatility and September challenges

Bitcoin (CRYPTO:BTC) has started the week on a downward trend, trading within the $58,000 range after briefly surpassing $60,000.

Analysts are warning that market conditions might worsen before they improve, particularly with the presence of a reversal zone that could influence price movement.

Additionally, key events expected this month could lead to increased volatility for Bitcoin.

QCP Capital researchers expect Bitcoin to face further correction, likely finding strong support around the $54,000 level.

This outlook comes after Bitcoin ended the month down 8.6%, impacted by a market crash caused by the Bank of Japan (BOJ).

QCP Capital highlights Bitcoin’s historical trend of a -4.5% return in September, suggesting a potential retracement to around $55,000.

Historical performance data presents a challenging picture for September, as Bitcoin has consistently underperformed during this month, with an average return of -4.78% since 2013, according to Coinglass.

Moreover, the third quarter (Q3) has historically been difficult for Bitcoin and the broader crypto market, with September often bringing caution among investors.

This sentiment is reflected in the poor performance of Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT).

A recent report from CryptoQuant indicates fewer stablecoin inflows, signaling that investors remain cautious and expect the downtrend to continue.

However, popular trader Daan Crypto Trades highlights the potential for a short-term pullback due to a new CME Gap near $59,000 and last week’s gap.

“A new CME Gap was made this weekend sitting at ~$59,000.

Last week’s gap is also still partially open but the price did close most of it during that move to $61,000,” the trader noted.

A CME gap occurs when Bitcoin’s price on the Chicago Mercantile Exchange (CME) differs between the market’s close and its reopening after a weekend or holiday.

These gaps are often filled as the price tends to return to the gap’s level.

Amid the current market volatility, Bitcoin whales are actively adjusting their portfolios.

One whale recently withdrew 1,100 BTC from Binance, while another purchased 1,000 BTC, increasing their holdings.

Avinash Shekhar, Co-founder of Pi42, predicts further fluctuations, especially with upcoming US economic events.

“A strong September US employment report could temper expectations for easier monetary policy, potentially leading to further market volatility. However, there’s also a 50% chance of an upward trend,” Shekhar stated.

Overall, Bitcoin faces a challenging September with the potential for further corrections and volatility due to historical patterns and upcoming economic events.

The market's movements remain uncertain, with traders and investors closely watching key support and resistance levels.

At the time of reporting, the Bitcoin (BTC) price was $59,138.18.