Bitcoin News Today: Bitcoin faces bearish pressure ahead of 'ghost month' as key support levels tested

Bitcoin’s recent price action has sparked a mix of resilience and concern among traders. On August 14, Bitcoin fell below $117,000, marking its most significant drop in a month and forming a bearish engulfing pattern not seen since July 15. This development has raised fears that the so-called “ghost month”—a period from August 23 to September 21 tied to Asian cultural superstition—could extend the correction phase for the cryptocurrency [1].

Despite the pullback, onchain activity suggests that traders are absorbing the dips rather than panicking. The Coinbase Premium Index hit a monthly high, signaling strong buying interest from U.S. investors, while the Kimchi Premium Index turned positive, indicating renewed demand in South Korea. Crypto trader Hansolar noted that buy orders were broadly distributed across major exchanges like Coinbase and Bitfinex [1].

Further support for a potential short-term rebound comes from stablecoin inflows. USDC deposits into exchanges surged to $3.88 billion following the price drop, according to analyst Maartunn, suggesting traders are preparing to deploy capital [1]. Meanwhile, signs of capitulation remain muted, with only 16,800 BTC moved to exchanges at a loss by short-term holders—a figure significantly lower than past sell-offs, which saw over 48,000 BTC moved during similar drawdowns [1].

Anonymous analyst Exitpump highlighted that Bitcoin could find near-term support between $116,000 and $117,000, where both spot and futures demand appears in the order books. However, historical patterns tied to the ghost month raise concerns. Since 2017, Bitcoin has typically declined by an average of 21.7% during this period, with past drops reaching as high as -39.8% in 2017 and -23% in 2021 [1]. With the market currently near $117,320, a similar correction could see prices fall into the $105,000–$100,000 range before any meaningful recovery.

While some years have seen positive returns by the end of the ghost month, the mid-period volatility suggests traders should remain cautious. A deeper correction in late August could ultimately set the stage for a stronger rebound in Q4, provided short-term bulls hold through the pressure.

The psychological impact of the ghost month on investor behavior remains a key variable in the near-term outlook. Even though the phenomenon does not directly affect markets, its influence on risk appetite and profit-taking decisions can amplify price swings. Traders are advised to watch closely for signs that the current correction is being absorbed versus a more panic-driven sell-off. As the market moves into the heart of the ghost month, the ability of Bitcoin to hold key support levels will be crucial in determining whether this period becomes an extended downturn or a temporary setback on the path to a broader rally.

Source: [1] Crypto News — Market Insights (https://www.tradingview.com/news/crypto/market-insights/)