Bitcoin, following its historic high of $124,000, faced a correction, dropping below $117,000. This phenomenon is linked to both technical factors and cultural influences.
Bitcoin's Drop After Record
After reaching a record high of $124,000, bitcoin experienced nearly a 6% drop, falling below $117,000 on August 14. The daily chart showed a bearish engulfing pattern, a technical indicator suggesting a potential trend reversal. This episode marks the sharpest retreat this month, indicating a consolidation phase.
The Role of 'Ghost Month' in the Correction
Cultural factors, such as the 'Ghost Month,' which runs this year from August 23 to September 21, also play a role in market dynamics. This tradition in Asia is viewed as a period of bad omens, potentially reducing risk appetites and increasing profit-taking. Historically, Bitcoin often experiences declines during this period, averaging a drop of 21.7% since 2017.
Prospects for the $100,000 Level
From a technical standpoint, the $116,000 to $117,000 zone represents a key support for Bitcoin, where spot purchases and futures positions are concentrated. If this level holds, the market could quickly regain an upward trajectory. Conversely, a significant retreat during the Ghost Month could reinforce the scenario of testing the $100,000 to $105,000 range.
Short-term prospects for Bitcoin remain uncertain, caught between signs of resilience and threats of seasonal corrections. This creates tension in the market as expectations return to questions of collective psychology and technical factors.
