Bitcoin Traders Anticipate a Challenging Q3 as Japanese Stocks Experience Major Sell-Off

Bitcoin is expected to navigate a difficult period as stock markets in Japan face a sell-off not witnessed in nearly four decades.

Bitcoin Price Stability Amid Global Stock Declines

Bitcoin (BTC) is attempting to maintain its position above $60,000, as traders express apprehension regarding the asset’s price trajectory.

Data from reliable market sources indicates that BTC/USD rebounded from recent lows of $62,235 recorded on August 2. The asset appears to be testing support levels as risk assets enter a volatile phase early in the month.

On August 1, significant news emerged from Japan, where the Nikkei index fell by 6%, marking its largest single-day loss since the infamous stock market crash of 1987.

Historically, the latter half of Q3 has proven to be a challenging period for Bitcoin traders, as highlighted by data from monitoring tools. Both August and September have recorded negative performance in recent years.

This August, BTC experienced a brief downtrend that dipped to $25,000, a low that traders have been watching closely.

Support at $60,000: A Crucial Threshold

Popular trader Jelle commented on the current market conditions, noting that historically, the remainder of Q3 tends to be sluggish for Bitcoin but often leads to upward movement by October.

“Historically, the market tends to struggle in the remainder of Q3 — but really starts moving higher once October comes around. Let’s see what we get this time around.”

Michaël van de Poppe, CEO of MNTrading, emphasized the importance of maintaining support above $60,000, echoing sentiments seen across social media regarding market behavior.

“Bitcoin needs to hold above $60-61K, and then we’ll likely see a continuation towards the all-time high.”

He remains optimistic that the momentum may shift towards the end of August, setting the stage for a new all-time high in September or October.

Indicators Suggest a Potential Breakout

Concerns are growing surrounding the trend of lower highs and lower lows that Bitcoin has experienced since its all-time high of $73,800 in March.

Despite the ongoing volatility, some traders remain composed, with Jelle stating that Bitcoin is still trading within a channel that provides key support.

“Looks like a breakout is getting closer by the day. Patience, until then.”

This information should not be construed as investment advice. Every investment carries risk, and individuals are encouraged to conduct their own research before making financial decisions.