Here’s Why Bitcoin Is Struggling to Hit a New High, According to IntoTheBlock

Bitcoin (BTC) has seen weak momentum in recent weeks, hovering between $55,000 and $65,000. The leading cryptocurrency has struggled to return to the $70,000 level, let alone reach a new all-time high (ATH).

IntoTheBlock analysts said that BTC failed to reach a new high as a large number of addresses acquired the asset between $61,700 and $70,500.

Holders lose between $61.7K and $70.5K

Nearly seven million addresses purchased BTC between $61,700 and $70,500. At the current bitcoin price of $56,500, every trader who purchased the asset in this range is currently losing money.

IntoTheBlock explained that whenever a large number of traders are losing in a certain range, BTC will face constant selling pressure as its price approaches the mentioned levels, as many market participants will be looking to break even. This means that in the $61,700 to $70,500 range, many traders could dump their assets in an attempt to minimize their losses.

For BTC to absorb the selling pressure, break the trend, and reach new highs, the cryptocurrency would need significant momentum. Unfortunately, BTC has a history of bearish Septembers; it likely wouldn’t have the momentum to break out this month.

A historically bearish month

Six of the last seven Septembers have closed in the red, with an average decline of 4.5%. BTC started this month in the red, falling from $60,000 to $55,000. Data from CoinMarketCap shows that the asset has fallen 5% over the last seven days.

Although the cryptocurrency market is still in a bullish phase, analysts believe that several factors could determine the trajectory of bitcoin’s price over the coming weeks. These factors include post-halving consolidation, anxiety over the U.S. presidential election, governments’ $33 billion BTC surplus, and recovered assets that are still being distributed to creditors of the defunct crypto exchange Mt. Gox.

Although it’s going to be a tough month for Bitcoin, the cryptocurrency is seeing some positive on-chain movements. The number of wallets holding over 100 BTC just hit a 17-month high, thanks to a significant increase in whale holdings. This means that Bitcoin whales are buying the dip and filling their stash in anticipation of an upcoming rally in Q4 2024.