Bitcoin (BTC) Struggles to Reach New Highs: Insights from IntoTheBlock

Bitcoin (BTC) has experienced weak momentum over recent weeks, fluctuating between $55,000 and $65,000. The leading cryptocurrency has found it challenging to return to the $70,000 mark, let alone push to a new all-time high (ATH).

According to analysts at IntoTheBlock, Bitcoin’s inability to reach a new peak is largely due to the significant number of addresses that acquired BTC within the $61,700 to $70,500 range.

Why Bitcoin is Struggling to Reach a New High👇

Nearly 7 million addresses acquired Bitcoin between $61.7k and $70.5k.

With a large number of traders in this range at a loss, $BTC faces consistent sell pressure whenever prices approach these levels, as many look to break even.… pic.twitter.com/mNp52UylwO

— IntoTheBlock (@intotheblock) September 2, 2024

Bitcoin Holders Facing Losses in the $61.7k–$70.5k Range

Nearly seven million addresses bought Bitcoin between $61,700 and $70,500. With the current trading price around $56,500, all these traders are currently at a loss.
IntoTheBlock noted that when a large group of traders are in a loss within a specific price range, Bitcoin often encounters persistent selling pressure as it nears these levels. This happens because many market participants aim to break even, leading to potential asset offloading in the $61,700–$70,500 range.

For Bitcoin to overcome this selling pressure, reverse the trend, and reach new highs, it would require considerable momentum. Unfortunately, Bitcoin has historically faced bearish Septembers, making it unlikely to gain the momentum needed to break through during this month.

September’s Historical Bearish Trend

Six of the last seven Septembers have closed in the red, with an average decline of 4.5%. This month, Bitcoin started on a negative note, dropping from $60,000 to $55,000. Data from CoinMarketCap reveals that the asset has declined by 5% over the past seven days.

Despite the crypto market remaining in a bullish phase, analysts believe that several factors could influence Bitcoin’s price direction in the coming weeks.
These include post-halving consolidation, concerns surrounding the United States presidential elections, the $33 billion Bitcoin supply overhang from governments, and the distribution of recovered assets to creditors of the defunct crypto exchange Mt. Gox.

Although September appears challenging for Bitcoin, the cryptocurrency is seeing positive on-chain activity. The number of wallets holding more than 100 BTC has reached a 17-month high, fueled by a notable increase in whale holdings.

This indicates that Bitcoin whales are buying the dip and adding to their holdings in anticipation of a potential rally in Q4 2024.

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