Sideways Now, Painful Correction Coming in September

Bitcoin’s rally to record highs just days ago has quickly given way to turbulence, with the leading cryptocurrency struggling to hold support levels.

Now, a market analyst is warning that sideways action could dominate trading until September, possibly followed by a steep correction.

Analyst Braces for a Red September

On Sunday, crypto trader Doctor Profit told his nearly 425,000 followers on X that Bitcoin will likely consolidate within a narrow range of roughly 8% until September before undergoing what he described as a “very red month.”

Last week, the analyst accurately predicted BTC’s pump to $123,000 and subsequent drop. However, this time around, his assessment is showing a constrained trading band for the cryptocurrency until September. “I’m expecting a sideways move within the range shown on the chart. This is a small mid-range of only ~8%,” he stated, advising against expecting major directional breaks soon.

However, according to him, next month will present a different picture. “In September, I expect a strong correction,” he asserted.

Although he refrained from providing specifics, the analyst emphasized the importance of strategic positioning for shorts in that month, saying, “the herd will panic,” and urging traders to take advantage of the dip.

His comments came in the wake of a volatile week for Bitcoin, with the asset briefly setting a new all-time high above $124,000 on August 14, before sliding sharply after hotter-than-expected U.S. inflation data.

Other analysts have echoed Doctor Profit’s caution. For instance, Rekt Capital noted that in previous cycles, similar retraces of between 25 and 30% served as setups for major rallies, but stressed that timing matters. Meanwhile, fellow trader Titan of Crypto flagged $119,500 as a level BTC must reclaim to keep its bullish outlook intact.

Market Outlook

At the time of this writing, Bitcoin was trading at $115,670, down 2.1% in the last 24 hours and 5% during the week. Over the past seven days, the OG crypto has swung between $115,355 and $123,782, reflecting heightened volatility. Despite the setback, it remains up nearly 95% year-over-year, underlining its longer-term strength.

The broader market is following Bitcoin’s lead. Ethereum, which reached $4,700 last week, has slipped but remains well above its summer lows. Other major cryptocurrencies, such as Solana (SOL) and Dogecoin (DOGE), have experienced daily losses of 4 to 5%, while Chainlink (LINK) and Cardano (ADA) have defied the downturn by posting 9.7% and 10.4% weekly gains, respectively.

From a technical perspective, trading signals provider Material Indicators warned in an August 18 post on X that BTC’s failure to break out above its 21-day moving average could weigh on near-term price action, suggesting more downside risk before another leg higher.