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Bitcoin could extend its summer crab walk into September, with a potential correction below the key psychological mark of $50,000.
The Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) price has struggled to gain momentum during an over two-week downtrend. The token has fallen over 12% since Aug. 26 to trade at $56,133 as of 11:24 am UTC, according to Cointelegraph data.
<figure>
 <img alt="Bitcoin set for sub $50K correction in September — Analysts" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c72c-dbef-751a-a308-4c6cb0c725c7">
 <figcaption style="text-align: center;">
 BTC/USD, 1-month chart. Source: Cointelegraph
 </figcaption>
</figure>
This dynamic could set up Bitcoin for a correction below $50,000, according to Cyrus Ip, the head of content at Bybit exchange.
Ip told Cointelegraph:
<blockquote>
 “The data suggests this as the course of least resistance as things stand. However, these things can change very quickly if a new catalyst or headline emerges, especially in a low liquidity environment.”
</blockquote>
Round psychological numbers like $50,000 invite significant investor attention. Crypto investor sentiment could take a significant hit and invite lower lows if Bitcoin price falls below $50,000.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-vc-funding-rebounds-august" rel="null" target="null" text="null" title="null">Crypto venture capital funding surges to $633M in August rebound</a>
<h2 id="bitcoin-holds-significant-support-at-55-000-and-52-000">Bitcoin holds significant support at $55,000 and $52,000</h2>
Crypto investors seem to be taking a breather, based on the latest onchain exchange data.
Following August’s brutal <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/top-50-cryptos-lose-2024-gains-510b-selloff" rel="null" target="null" text="null" title="null">$510 billion crypto market sell-off</a>, open interest and trading volume have been in continuous declines for both Bitcoin and Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="null" target="null" text="null" title="null">ETH</a>), according to a Sept. 4 research <a data-ct-non-breakable="null" href="https://learn.bybit.com/crypto-insights/block-scholes-x-bybit-crypto-derivatives-analytics-report-sep-4-2024/" rel="null" target="null" text="null" title="null">report</a> by Bybit and Block Scholes, which stated:
<blockquote>
 “Open interest for perp options has been on a steady downward trend. In addition, we notice a parallel downward trend in trading volumes.”
</blockquote>
<figure>
 <img alt="Bitcoin set for sub $50K correction in September — Analysts" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c72d-52b1-789f-bccc-992f925725f1">
 <figcaption style="text-align: center;">
 Bybit Perp BTC and ETH Open Interest. Source: Bybit and Block Scholes
 </figcaption>
</figure>
While this could set the stage for a Bitcoin correction below $50,000, BTC still holds two significant support levels, explained Ip:
As for price targets, if you look at support levels, there are still $55,000 and $52,000 that are notable support levels before we reach $50,000.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-correction-crypto-market-drop-54k" rel="null" target="null" text="null" title="null">Total crypto market sinks below $2T as analysts eye Bitcoin reversal below $54K</a>
<h3 id="etf-outflows-and-historic-data-threaten-sub-50-000-btc-in-september">ETF outflows and historic data threaten sub-$50,000 BTC in September</h3>
September has historically been a month of downside volatility, with average Bitcoin returns at -4.69%, making it the most bearish month based on average returns, <a data-ct-non-breakable="null" href="https://www.coinglass.com/today" rel="null" target="null" text="null" title="null">according</a> to CoinGlass data.
<figure>
 <img alt="Bitcoin set for sub $50K correction in September — Analysts" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c72d-ae4b-7ba3-9471-6058df533626">
 <figcaption style="text-align: center;">
 Bitcoin monthly returns percentage. Source: CoinGlass
 </figcaption>
</figure>
The historic performance, along with a potential rate cut in the US, could set the stage for a correction below $50,000, before the real bull rally, according to Bitfinex analysts.
The analysts told Cointelegraph:
<blockquote>
 “This is not an arbitrary number but based on the fact that the cycle peak in terms of percentage return reduces by around 60–70% each cycle, and the average bull market correction has reduced as well.”
</blockquote>
<a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter" rel="" target="_self" text="null" title="https://cointelegraph.com/explained/what-are-etf-fund-flows-and-why-do-they-matter">Negative inflows</a> from the US spot Bitcoin exchange-traded funds (ETFs) are also pressuring Bitcoin prices.
<figure>
 <img alt="Bitcoin set for sub $50K correction in September — Analysts" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c72e-71c2-72f7-a6d4-f8f40183465b">
 <figcaption style="text-align: center;">
 Bitcoin ETF Flow (USD, million). Source: Farside Investors
 </figcaption>
</figure>
The US ETFs have recorded seven days of continuous net outflows, with over $211 million worth of outflows on Sept. 5, <a data-ct-non-breakable="null" href="https://farside.co.uk/btc/" rel="nofollow noopener" target="_blank" text="null" title="https://farside.co.uk/btc/">according</a> to Farside Investors data.<iframe width="100%" height="315" src="https://www.youtube.com/embed/qihdsUa_zdY" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>
Trump vs. Harris: Who Would Be Better for Crypto? Source: Cointelegraph
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/parents-addicted-pi-network-crypto-tapper/" rel="null" target="null" text="null" title="null">Help! My parents are addicted to Pi Network crypto tapper</a>

Bitcoin set for sub $50K correction in September — Analysts

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