In August 2023, Bitcoin displays a weak performance, with a potential price drop to $105,000 before an expected recovery. Institutions continue to buy cryptocurrency aggressively despite the historically negative dynamics this month.
August and Historical Bearish Trends
Historically, August has been an unfavorable month for Bitcoin. Since 2017, Bitcoin has shown negative returns in 5 out of 7 Augusts. The average decline has been 11.4%, indicating a high probability of a more drastic drop to the $105,000 level. This level also coincides with the bottom trendline of an ascending triangle in the Bitstamp daily chart. A breach of this structure could threaten the bullish macro view and potentially lead to a larger correction.
Bull Flag Structure of Bitcoin
Despite the bearish predictions, Bitcoin has re-entered the bull flag structure, reaffirming its recovery attempt. Analysts noted that the price of Bitcoin is again trading above the lower trendline of the flag, and breaking the $115,000 level could open the path to $118,000. The upcoming trading sessions will likely indicate the direction Bitcoin price will take in Q3.
Support Level for Further Growth
Analysts reported that the recent pullback in Bitcoin price retested the support level at $112,000, which has held firm. It is projected that if the price remains above this rising support, there is potential for a rally to $124,000, aligning with the compression zone breakout target.
Thus, August may bring both declines and potential recovery prospects for Bitcoin. Institutional purchases and support levels will be key factors in determining future price movements.
