Bitcoin may be positioning for another move higher after holding key support despite a sharp intraday sell-off, according to prominent crypto trader DonAlt.
“Looks like we’re gonna get another leg up soon,” DonAlt said in a post on X on Aug. 31.
The outlook comes as Bitcoin enters September following an unusually strong August and a powerful third-quarter recovery. The largest cryptocurrency has climbed sharply from around $64,700 earlier in the month. Recent price action shows $BTC consolidating near $78,000 after briefly approaching $81,000.
Bitcoin holds support after sharp sell-off
Bitcoin briefly moved above $80,000 in late August before retreating toward $77,000. Instead of extending its decline, however, the cryptocurrency stabilized and began to recover, suggesting that buyers remain active below $78,000.
Bitcoin recently suffered an almost 6% intraday decline after Federal Reserve governor Kevin Warsh adopted a more hawkish tone, according to Bitfinex. The cryptocurrency nevertheless held near $77,100.
Strategy buys another 4,603 Bitcoin
Strategy, the Michael Saylor-led business intelligence company that has made Bitcoin the centerpiece of its treasury strategy, purchased another 4,603 $BTC for approximately $369.7 million. The purchases took place between Aug. 24 and Aug. 30 at an average price of $80,318.
The acquisition shows that Strategy continued buying despite considerable Bitcoin volatility toward the end of the month. Whale activity has also remained elevated. Whale Alert reported the transfer of 1,922 $BTC, worth approximately $149.7 million, between two unidentified wallets on Aug. 31.
Large cryptocurrency transfers do not necessarily indicate buying or selling. They can also reflect internal wallet movements, custody changes or other forms of repositioning.
Bitcoin posts one of its strongest August performances
Bitcoin’s technical setup comes as the cryptocurrency closes one of its strongest months in years.
Bitcoin’s third-quarter return currently stands at approximately 32.48%, substantially above its historical average Q3 return of 7.94%. The performance is particularly notable because it follows two consecutive quarterly declines: a 22.2% loss in Q1 and a 14.09% decline in Q2.
Analysts remain divided over a sustained Bitcoin rally
Despite the increasingly bullish technical picture, some analysts remain skeptical that Bitcoin has entered a new sustained bull market.
Mike McGlone, a longtime Bitcoin bear, argued that the cryptocurrency continues to face significant macroeconomic headwinds. He cited Federal Reserve policy, competition across the broader crypto market and Bitcoin’s growing correlation with equities as reasons for caution.
As a result, the $80,000-$81,000 range could become a major test for Bitcoin bulls.
