Watch These Bitcoin Price Levels Heading Into September

Bitcoin (BTC) slumped overnight and is well below its March all-time high as investors search for the next catalyst to drive the price higher heading into a month when the pioneer cryptocurrency tends to underperform.

The cryptocurrency has only generated a positive return three times in the month over the last decade, according to data from crypto analytics site Coinglass.

Bitcoin, which trades around 18% below its record set in early March, has struggled to gain traction in recent months as the January launch of spot Bitcoin exchange-traded funds (ETFs) and April’s halving event slip further into the rearview mirror.

Bitcoin was recently trading at around $60,000, after slipping below $59,000. The cryptocurrency traded at more than $73,000 in March.

Below, we’ll take a closer look at Bitcoin’s chart while turning to technical analysis to identify key price levels of interest.

Technicals Remain Bearish

Bitcoin’s price has traded within a descending channel since early July, with volumes on Coinbase (COIN) remaining mostly subdued throughout the pattern, indicating lackluster investment interest in the legacy cryptocurrency.

In another bearish development, the 50-day moving average crossed below the 200-day MA earlier this month to create a death cross, an appropriately named chart signal that cautions the start of a new downtrend. More recently, Bitcoin’s close on Tuesday below the 50-day MA will likely weigh on short-term momentum in the absence of a new bullish narrative.

Given the recent volatility in Bitcoin and other risk-on assets, investors should monitor these bull and bear case price levels in the world’s largest cryptocurrency.

Bull Case Price Levels to Watch

An initial breakout above the descending channel’s upper trendline could see Bitcoin’s price move up to $68,500, an area where sellers may decide to bank profits near twin peaks that formed on the chart in July.

Further upside momentum may lead to a retest of $72,000, where the cryptocurrency’s price could meet selling pressure just under the all-time high (ATH) near a horizontal line linking a series of comparable trading levels between March and June.

Bear Case Price Levels to Watch

Ongoing selling could see the price fall to around $53,000, a location where bulls may look for buying opportunities near a period of consolidation that formed during the cryptocurrency’s strong move higher from January to March.

A deeper correction may trigger a trending move down to $47,000. The area, which sits around 20% below Tuesday’s closing price, could find support from a range of prices positioned just below the January swing high.

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As of the date this article was written, the author does not own any of the above securities.