According to an analyst, the end of August could produce a very interesting monthly candle on the Bitcoin chart and signal a potential trend reversal. However, others warn that the month is not over yet and fundamental factors are more likely to have a greater impact on market movements.
Notable Development in Monthly Chart
In a post published on X on August 26, analyst HODL15Capital stated that this is arguably the most interesting monthly candle in Bitcoin’s history. The analyst referred to the formation of a Japanese candlestick known as a dragonfly doji on the monthly time frame chart. A dragonfly doji is a candlestick pattern that can signal a potential price reversal based on past price action. Speaking on the matter, FXPro senior analyst Alex Kuptsikevich said that the dragonfly formation on Bitcoin’s monthly chart reflects optimism about a recovery after the failure at the beginning of the month.
Details on the Matter
Meanwhile, Apollo Crypto analyst Henrik Andersson was not convinced by the technical signal and argued that fundamentals and sentiment drive the market: "The short and medium term will likely be driven by interest rate cuts and election forecasts." At the time of writing, Bitcoin price had fallen 1.2% daily to trade at $63,150.
Thus, analysts are divided on the future of Bitcoin's movement: some see the potential for growth, while others question the impact of technical signals and focus on fundamental factors.
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