Bitcoin is closing out August below a crucial resistance level, with traders now factoring in a possible Fed rate hike in September. As the new week kicks off, all eyes are on the technical setup and shifting expectations around monetary policy.

BTC Faces Monthly Close Test

Heading into the end of August, BTC is still trading under a key level that bulls have been watching. This positioning right at resistance makes the monthly close a big deal for short-term sentiment: traders are watching to see if selling pressure sticks around or if Bitcoin can break out higher.

September Rate Hike Back on the Table

Once again, financial markets are starting to price in the odds of a Fed rate hike in September. With this setup, crypto is stuck in wait-and-see mode, and sentiment is extra sensitive to any news on monetary policy shifts.

What to Watch This Week

The focus is on how the monthly close plays out and any signals about the Fed’s next move. For BTC, the key is how price action reacts to this resistance zone and to any macro headlines in the coming sessions.