Is Bitcoin's Best August in Years Ready for September Volatility?

Bitcoin (CRYPTO: BTC) enters a historically challenging September after its best August in years, with $78,000 emerging as a key level in determining the next move.

Who Says the Rally Is ‘Bearish‘

Panelists on Scott Melker’s podcast on Aug. 31 described August’s 25% rebound as one of the largest short squeezes in its history that reset Bitcoin from its summer lows.

Bloomberg’s macro strategist Mike McGlone remains bearish, arguing Bitcoin’s high correlation with equities and the prospect of higher interest rates leave the cryptocurrency vulnerable as seasonal volatility rises.

He views the latest rally as an opportunity to sell, framing $77,000 to $78,000 as an attractive level for his bearish thesis.

McGlone expects risk assets to struggle if stocks enter a normal correction and said Bitcoin could face amplified downside because of its historically higher volatility.

Investor Dave Nadig pushed back, arguing Bitcoin’s recent rally reflects more than a technical squeeze.

He expects Bitcoin to consolidate after its unusually strong weekly move, potentially trading between the low-$70,000s and high-$70,000s for several weeks.

Nadig said several headwinds that previously weighed on Bitcoin have started fading, including forced deleveraging and concerns over quantum-computing risks.