A recent report from 10x Research warns of a potential decline in Bitcoin prices as August approaches, historically a challenging month.
Bitcoin Price Weakness in August
Markus Thielen, lead analyst at 10x Research, has identified a historical pattern indicating that August is often the weakest month for Bitcoin prices. His research shows that many years have seen Bitcoin experience losses ranging from 5% to 20%. This trend is not new and highlights the influence of seasonal factors on market volatility.
Capital Inflow Analysis
The 10x Research report also examines capital inflow data into the Bitcoin network. Recently, the 30-day rolling average of capital flows decreased from $62.4 billion to $59.3 billion. This reduction indicates a potential shift in market dynamics, as declining new capital inflows may slow price movement and lead to consolidation.
Potential Support Levels
The report also highlights key support levels for Bitcoin. A breakdown below $117,000 may trigger further declines, with additional support identified at $112,000 and a deeper range between $106,000 and $110,000. These levels often correspond to previous trading activity and can provide a basis for potential price recovery.
Given the complex dynamics of the current market, investors should be prepared for potential Bitcoin price volatility, considering both historical data and current macroeconomic conditions.
