Bitcoins $100K support faces its toughest test yet - Miners cash out

Bitcoin [BTC] wrapped up August on a weak note, snapping its recent momentum with a sharp monthly decline.

Selling pressure from miners and fragile support levels increased the risk of deeper losses as the market entered September.

Augusts red finish breaks Bitcoin momentum

Bitcoin ended August with a 6.49% negative return, halting its mid-year recovery and aligning with its tendency for late-summer weakness.

The drop stood out against Julys 8.13% gain, a sharp reversal in sentiment.

In fact, August has been negative in four of the past five years, with 2020 being the last strong green for the month.

Source: X

Naturally, this seasonal pattern has kept traders cautious about Septembers prospects.

September, so far, has also been weak for Bitcoin (with a median return of -3.12%). The question now is whether the $100K support zone can withstand further selling pressure.

This is especially uncertain as Miner Flows and macro conditions continue to weigh on momentum.

Miner selling adds pressure to the correction

After Augusts decline, Miner Flows came into focus, and the signals were bearish.

A recent CryptoQuant report showed elevated Miner to Exchange Flow, particularly into Binance, signaling stronger selling pressure.

After touching an ATH in mid-August, Bitcoin slid roughly 13% to around $108,700 by early September. Not to mention, the move lined up with profit-taking and miner liquidations.

Source: CryptoQuant

The April 2024 halving had already squeezed margins for smaller players, pushing many to offload coins just to stay afloat.

If this trend persists, the correction can deepen, especially with $100,000 now acting as a critical support level for traders.

Key levels in focus as September trading kicks off

Next: Bitcoin – KEY metrics reveal why BTCs 12.8% pullback signals strength