Despite reaching an all-time high of $124,533 earlier in August, Bitcoin experienced a 2.07% decline this month, reversing four months of consecutive gains from April to July.

Key economic indicators, such as the July PCE inflation data and upcoming CPI and PPI reports, are crucial to watch as they could sway the Fed's monetary policy during the September meeting.

Market analysts, including Anthony Pompliano, suggest that the market is closely watching the upcoming September Federal Reserve meeting, where a potential rate cut could significantly influence Bitcoin's price movement.

September's negative trend is well-documented, but historically, Bitcoin has shown resilience, with four out of the last five Septembers ending in gains, including 2023 and 2024.

Historical data indicates that September is typically a weak month for Bitcoin, with an average decline of about 3.8%, and the month is often considered the worst on average, but a strong rebound is expected in Q4, with an average gain of 88%.

Currently, Bitcoin trades around $113,049, with market sentiment heavily influenced by macroeconomic developments and the Federal Reserve's policy decisions.

Analyst Anthony Pompliano highlights that Bitcoin may be seeking a correction and consolidation, trading within a band of $110,000 to $125,000, before potentially rallying.

August has historically been a slow month for Bitcoin, often seeing significant losses, but the recent downturn is viewed as a healthy cooldown amid ongoing accumulation by crypto ETF inflows and treasury firms.

In late August, Bitcoin's trading has been choppy, hovering near $112,900 amid uncertainties ahead of the Fed's September policy decision.

The upcoming Fed meeting on September 16-17 is critical, with high chances of a rate cut depending on incoming economic data, which could further influence Bitcoin's trajectory.

The month of September is often considered a local bottom for Bitcoin, earning the nickname 'Sendtember,' with expectations of a strong recovery in October, dubbed 'Uptober'.

Despite the negative seasonal trend, Bitcoin has managed to close September in the green four times, including in 2023 and 2024, with gains of 3.9% and 7.3%, respectively.