Bitcoin News Today: Bitcoin Trapped in $116,000-$124,000 Range Amid Anticipated September Correction

Bitcoin is entering a period of consolidation as it remains trapped within a tight trading range, with analysts increasingly pointing to a potential correction in September. The cryptocurrency has oscillated between $116,000 and $124,000 over the past seven weeks without breaking above $120,000 to establish a clear upward trend. A significant 6% drop on August 14 pushed the price down to below $117,000, highlighting growing volatility in the market [1].

Analysts have attributed this recent correction to a combination of factors, including seasonal volatility, a cautious market ahead of the Federal Reserve’s upcoming monetary policy decisions, and investor behavior influenced by the Ghost Month period [1]. Despite these short-term fluctuations, the broader bullish trend for Bitcoin remains intact. Some market observers speculate that the current consolidation could lead to a move toward $130,000 before the end of September, though such forecasts depend heavily on global macroeconomic conditions and regulatory developments [2].

Notably, a recent market analyst successfully predicted Bitcoin’s movement between the $117,000 and $123,000 range, reinforcing the idea that the market is operating under a well-defined technical and psychological framework [3]. Following this accurate forecast, analysts are now suggesting a period of relative calm ahead of a potential correction. Bitcoin is expected to remain range-bound within an 8% band until the end of August, offering investors a window to prepare for the anticipated volatility in September [3].

A major correction is expected to hit in September, with analysts warning of a sharp but temporary decline that could clear the path for a stronger medium-term rally. While the exact magnitude of the correction remains uncertain, market sentiment and technical indicators suggest that such a move is likely. The current sideways trend is seen as a prelude to a more aggressive price action, with experienced traders preparing to short the market as it declines and then accumulate during the subsequent panic-driven trough [3].

On-chain data, however, shows no signs of panic selling or large-scale profit-taking. Large wallets continue to accumulate Bitcoin, and funding rates remain stable, indicating that the overall bullish structure of the market remains intact. The coming dip is thus more likely to be a temporary correction rather than a structural reversal [3].

Investors are advised to stay alert to macroeconomic events, particularly the Federal Reserve’s monetary policy announcements. The only significant market-moving event this week is expected to be Jerome Powell’s speech on Friday, which could influence sentiment and trigger unexpected volatility. Given the current market dynamics, the correction is being positioned as a healthy and necessary adjustment rather than a bearish signal.

The broader market sentiment is also reflected in the Fear and Greed Index, which has not reached extreme levels of greed, suggesting that the market remains cautious. The renewed interest in alternative cryptocurrencies, such as Ethereum, points to a diversification of risk and a hedging strategy among investors [4].

As the market continues to consolidate, the focus remains on both internal and external catalysts that could break the current range. Traders are advised to monitor both on-chain metrics and macroeconomic developments closely, as the outcome of these factors will determine whether Bitcoin escapes its sideways trend or remains in a holding pattern until more significant catalysts emerge. For now, the market is in a state of anticipation, waiting for clearer signals from both the crypto and traditional financial markets [3].

---

Source: [1] Bitcoin News Today: Bitcoin Drops Below $116000 for First ... https://www.ainvest.com/news/bitcoin-news-today-bitcoin-drops-116-000-time-weeks-seasonal-concerns-2508/

[2] Bitcoin Explodes Past $122,000: Will BTC Hit $130,000 Before September? https://cryptodnes.bg/en/tag/layer-2/

[3] Bitcoin Outlook: Halving Correction Expected In September May Not Occur https://cfgi.io/not-fear-greed-index/

[4] Manuel Guevarra https://www.facebook.com/manuel.guevarra.369210/posts/regulated-bitcoin-btc118071-investment-banks-are-coming-to-el-salvador-following/747447604835117/