Bitcoin Drops 5% in August, $110K Support Key
Bitcoin slid 5% over the weekend, dropping from about $118,330 on Friday to $112,300 on Sunday, marking the start of August’s historically bearish period. Glassnode data shows Bitcoin has fallen in eight of the last 12 Augusts, with an average loss of 11.4%. IG Markets analyst Tony Sycamore warns that Bitcoin must hold the $112,000–$110,000 support zone to avoid deeper losses. If support fails, prices could test the 200-day moving average near $99,355. In the absence of positive catalysts, the $125,000 level stands as stiff resistance, just above Bitcoin’s all-time high near $124,000. Traders should monitor US jobs data and trade tariffs, given their impact on risk sentiment. September has also underperformed historically, recording declines in eight of the past 12 years.
Bearish
Bitcoin’s 5% drop in early August and the breach of critical support levels signal continued bearish pressure in the near term. The historical trend of August declines, combined with weak macro factors such as US jobs data and trade tariffs, undermines risk sentiment and increases the likelihood of further downside toward the 200-day moving average around $99,355. A failure to hold the $112,000–$110,000 support zone could extend losses toward the $100,000 mark. Longer-term outlook remains conditional: if Bitcoin stabilizes above $110,000, a retest of its all-time high near $124,000 is possible. However, absent positive catalysts, the prevailing sentiment will likely keep the market in a bearish bias.