Bitcoin fights on $58K support line

Bitcoin once again headed lower in the first trading session of September, continuing a trend that has emerged over the past several weeks. Price action shows its current value of $58,200 and has decreased by less than ten percent this week.

Cardano, Chainlink, and Ethereum have dropped more than Bitcoin. Solana has the worst session, declining nearly double digits in % terms. The price of bitcoin is at $58K, down 9% over the last seven days, based on data from CoinMarketCap.

Bitcoin dropped more than 12% for the month just over a day after August ended, more than offsetting a bullish July. While the market might have disappointed retail traders,Santiment data showed the number of Bitcoin whales is increasing.

In just one month, there has been a net gain of +283 wallets with at least 100 BTC. The network’s total number of these wallets, 16,120, has surpassed a 17-month peak.

Consequently, Bitcoin problems that began in August, can be ascribed to worries expressed by investors in traditional finance, despite the market’s pricing of a 100% chance of an interest rate cut in September and the strong reliance on the growth of tech companies, which is being driven by demand for artificial intelligence.

In other words, even marginally unfavorable economic data can trigger sharp fluctuations in fixed-income markets, have a knock-on effect on the stock market, and impact the price of Bitcoin.

Market pundits affirmed a well-liked Bitcoin indicator that traders use to assess miner selling activity is getting close to a level that suggests a good time to buy Bitcoin. These two crucial thresholds are where the Puell Multiple index oscillates. Contributor Grizzly of CryptoQuant explained in an Aug. 31 research note that “a bearish scenario where the index drops below 0.6 could once again signal a favorable buying opportunity for investors if historical patterns hold.”

Traders commonly use the Puell Multiple to gauge the state of miner revenues. For instance, a high Puell Multiple could point to low sell pressure, but a low Puell Multiple might point to high sell pressure.

At the time of this publication, the Puell multiple is reading a score of 0.69. To put things in perspective, the Puell Multiple was at 1.88 on March 13, when Bitcoin reached its all-time high of $73,679.

However, CCData highlighted an increase in options open interest affirming traders of Bitcoin are highly optimistic about a bullish trend that may prevail, According to the data, since the start of the month, open interest in Bitcoin options has increased by 32.5 percent, with a low put/call ratio.

The total calls compared to puts in an asset’s options market is known as the put/call ratio. Concentrated call options around the $100K price level indicate that investors may be targeting the $100K price level for Bitcoin,