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

Bitcoin (BTC) has witnessed weak momentum over the past weeks, ranging between $55,000 and $65,000. The leading cryptocurrency has struggled to return to the $70,000 level, much less rallying to a new all-time high (ATH).

Analysts at IntoTheBlock said BTC has been unsuccessful in its attempts to surge to a new peak because a large number of addresses acquired the asset between the $61,700 and $70,500 range.

Holders at Loss in $61.7k–$70.5k Range

Almost seven million addresses purchased BTC between $61,700 and $70,500. At bitcoin’s current trading price of $56,500, every trader who acquired the asset at this range is currently at a loss.

IntoTheBlock explained that whenever a large number of traders are at a loss in any range, BTC will face consistent sell pressure as its price approaches the said levels because many market participants will be looking to break even. This means that in the $61,700–$70,500 range, many traders could offload their assets as they try to minimize their losses.

For BTC to absorb the selling pressure, break the trend, and jump to new highs, the cryptocurrency would need significant momentum. Unfortunately, BTC has a history of bearish Septembers; it would likely not see the necessary momentum to break through this month.

A Historically Bearish Month

Six out of the last seven Septembers closed in the red, with an average decline of 4.5%. BTC began this month in the red, falling from $60,000 to $55,000. Data from CoinMarketCap shows the asset has slumped 5% in the past seven days.

Although the crypto market is still in a bull phase, analysts believe several factors could determine the trajectory of bitcoin’s price as the weeks progress. Some of them are post-halving consolidation, anxiety surrounding the United States presidential elections, the $33 billion BTC supply overhang from governments, and recovered assets still being distributed to creditors of the defunct crypto exchange Mt. Gox.

While the month seems challenging for BTC, the cryptocurrency is witnessing positive on-chain movements. The number of wallets holding more than 100 BTC just hit a 17-month high, driven by a significant surge in whale holdings. This means that Bitcoin whales are buying the dip and topping their stash in anticipation of an upcoming rally in Q4 2024.