What to expect for Bitcoin in August
August is typically one of the more bearish months for Bitcoin, with only 5 out of the past 14 Augusts ending positively. While everyone loves upward movement, it seems likely that BTC will continue to chop around within the 60k to 70k range. Since the last low on July 5th, BTC has moved up about 30%, a significant rise that could explain the weakness that followed. Price naturally moves in waves, an ebb and flow that is typical in market action.
I expect more weakness or sideways movement in the next two weeks, with a best-case scenario of testing the upper range between $70K and $74K near the end of August. Of course, I always welcome a more bullish breakout scenario. Price action and volume suggest that the July 5th low should hold; if it doesn't, it might signal a long-term trend change. In that case, I would become more cautious and adjust my crypto allocations accordingly.
For now, there's no need to worry. The weekly chart shows a bull flag that is likely to break to the upside. Therefore, I'm not planning any changes to my crypto portfolio. I'm 100% long and will stay that way as long as the bull run continues.
The monthly candle is closing today and looks extremely bullish, with a pending green pin bar consolidating below the all-time high.
BTC is nearing a breakout phase, typically occurring in Q4 of the halving year. Due to the ETF approval, BTC moved up quicker than in previous cycles, with five big monthly candles pushing to the highs. I expect another significant move next year once this multi-month consolidation ends. Historically, September and October have marked the start of major moves for Bitcoin, so I anticipate some euphoric sentiment to return then.
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Written by Timothy Assi, an Elite Popular Investor on eToro: Follow & copy my portfolio.
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