Bitcoin Ready for Next Leg Up, Top Trader Says

Bitcoin may be preparing 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 comment comes as Bitcoin heads into September after an unusually strong August and a powerful third-quarter recovery. The largest cryptocurrency has risen sharply from the roughly $64,700 area seen earlier in the month, with the latest price action showing $BTC consolidating near $78,000 after briefly approaching the $81,000 region.

Bitcoin briefly pushed above $80,000 in late August before retreating toward $77,000. Rather than extending the decline, however, the asset stabilized and began recovering, supporting the view that buyers remain active below the $78,000 level.

Bitcoin recently experienced a nearly 6% intraday decline after Federal Reserve governor Kevin Warsh took a more hawkish tone, according to Bitfinex. The cryptocurrency nevertheless held around $77,100.

Another Strategy purchase

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 were made between Aug. 24 and Aug. 30 at an average price of $80,318.

The acquisition means Strategy continued buying even as Bitcoin experienced considerable volatility near the end of the month. Whale activity has also remained elevated. Whale Alert reported a transfer of 1,922 $BTC worth approximately $149.7 million between two unidentified wallets on Aug. 31. Such transactions do not necessarily indicate buying or selling, as large transfers can involve internal wallet movements, custody changes or other forms of repositioning.

Strongest August in nine years

Bitcoin’s technical setup comes as the cryptocurrency closes out one of its strongest months in years.

Bitcoin’s Q3 return currently stands at approximately 32.48%, substantially above its historical average Q3 return of 7.94%. The figure is particularly notable because it follows two consecutive quarterly declines: a 22.2% loss in Q1 and a 14.09% decline in Q2.

Not everyone expects a 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 pointed to Federal Reserve policy, competition within the broader crypto market and Bitcoin’s increasing correlation with equities as reasons for caution.

Hence, the $80,000-$81,000 area could become a major test for bulls.