Bitcoin (find out how buy Bitcoins) and the cryptocurrency market in general experienced a strong recovery in August. The overall cryptocurrency market capitalization has increased by more than 25% in the past month. It is highly likely that the cryptocurrency market will end above $ 2 trillion this month.
However, September will be a very important month for BTC and the entire crypto space. Historical data shows that Bitcoin remained under pressure throughout September.
The fourth quarter is still solid for BTC
Although the price of BTC has risen by more than 10% in the monthly charts, it has been under pressure over the past week. As we move into September 2021, the price of BTC fell 1,15% today.
With this, Bitcoin is trading closer to its 200-day MA support of $ 46.000. Here's what famous cryptocurrency analyst Lark Davis has to say about it.
As mentioned, September has historically remained gloomy for Bitcoin. Furthermore, with the latest rejection at $ 50.000, Bitcoin traders appear to be getting restless. This has resulted in downward pressure on prices for the largest cryptocurrency in the world.
However, long-term investors don't have to worry much about this. The fourth quarter has always remained a strong quarter for Bitcoin. Therefore, there is every chance that BTC could reach its all-time high and beyond in the last quarter of 2021.
Ethereum (ETH) and Altcoin
The second largest cryptocurrency in the world, Ethereum, has been trading well so far. Defying the current market pressure, the ETH price is trading green today. At press time, Ethereum (ETH) is up 4,5%.
In August 2021, Ethereum gained over 30% bringing the altcoin rally closer to the ATH. Demand for ETH remains strong amid this year's solid NFT market boom. However, with the rise in NFT operations, there is a decline in DeFi activity on the Ethereum blockchain.
In addition, there was a strong institutional build-up for ETH throughout the month of August. Additionally, ETH miners' balances have roughly tripled this month. As reported by Santiment, an on-chain data provider:
Ethereum miners' balances absolutely skyrocketed in August, substantially tripling from $ 81.512 ETH to $ 243.000 ETH today (+ 198%). The historic reversal of held miners' coins went from a late July #AllTimeLow to a virtual high of 3 years today.
Additionally, the number of non-zero addresses on Ethereum hit a new all-time high of 60,7 million. For the month of September it remains to be seen whether Ethereum (ETH) will be able to continue with its solid fundamentals.
Historically, ETH has also corrected itself in September for most of the past few years. It will be interesting to see if ETH can defend the $ 3000 levels.
On the other hand, altcoins like Cardano (ADA), Polkadot (SOL), Dogecoin (DOGE) and Solana (SOL) will be on the radar. As previously reported, altcoins dominated institutional inflows among Bitcoin's net outflows.