Bearish Signs Emerge as Bitcoin Struggles

Bitcoin (BTC) is currently trading at $109,236.04, having recently breached significant support levels, which has raised alarms about a potential drop to $100,000. This troubling trend marks a stark departure from a four-month winning streak, with Bitcoin experiencing a 6.5% decline in August, further amplified by the outflow of $751 million from U.S.-listed spot exchange-traded funds (ETFs).

Key Support Levels Shattered

The recent downturn has seen Bitcoin plunge below crucial support thresholds, including the formidable Ichimoku cloud and both the 50-day and 100-day simple moving averages (SMAs). Additionally, it fell beneath vital horizontal support zones established during the previous peaks of $111,965 in May and $109,364 in December. These breakdowns signal a notable weakening in market confidence.

Momentum Indicators Point to Continued Decline

A confluence of bearish indicators backs this alarming shift. The Guppy Multiple Moving Average (GMMA) is showcasing a downward cross, with the short-term exponential moving average (EMA) dropping below the longer-term EMA. Furthermore, the weekly MACD histogram has slipped beneath zero, signaling a shift from bullish to bearish trends.

Will September Bring More Pain?

Compounding the volatility is the historical trend of September, which has proven notoriously bearish for Bitcoin. Data from Coinglass reveals that since 2013, BTC has averaged a negative return of 3.49% during this month, closing lower in eight of the last twelve Septembers.

A Crucial Time for Bitcoin Bulls

For the bulls to stave off this bearish tide, reclaiming the recent high of $113,510 from August 28 is critical. Failure to do so could validate predictions of a sustained sell-off, potentially driving Bitcoin down to its 200-day simple moving average at approximately $101,366, inching closer to that daunting $100,000 threshold.