Bitcoin Enters August With Losses, Has It Set The Tone For The Month?


Bitcoin entered a new month, but its price was not as good as expected. The end of July brought good news as the price of Bitcoin crossed $24,000. However, maintaining this point was a more difficult task. With the market welcoming the new month of August, Bitcoin didn’t have the best start to the new month, entering it with a red daily close.

Bitcoin going to win?

Bitcoin’s recovery over the past week has been pushed forward by various things. The most recent was the announcement that the United States is now in recession after recording negative GDP growth twice in a row, prompting individuals to find a place to store their wealth. Bitcoin has naturally provided the perfect hedge for people looking to escape rising inflation, leading to a massive accumulation trend.

Related reading | Impressive Rally Puts Bitcoin Above $24,000, But Is $28,000 Still Possible?

Bitcoin price has seen a rapid breakout of several important technical levels. The 26th and 27th were really good days for bitcoin after the digital asset closed both days in green. But that will change quickly in the next couple of days.

With the new month, Bitcoin has now seen its third consecutive daily red close. Now, this is not alarming in any way, given that the digital asset is in a bear market, but it does speak to the performance of the digital asset in the coming days.

Bitcoin (BTC) price chart from TradingView.com

BTC falls to mid-$23,000 | Source: BTCUSD on TradingView.com

An example is that if there is no immediate recovery, the drop that follows will see the cryptocurrency drop more than it actually gained in the recent recovery. What this means is that a failure to sustain this bullish run could send bitcoin back to the $20,000 love level.

It is clear that Bitcoin has previously seen significant support at this level and is still seeing increasing support at the same point, but it makes no difference if there is not enough buying pressure in the market. Also, as investors rush to take profits during the recent recovery, selling pressure may confuse traders and shift their focus to shorting the market.

Related reading | The new master could be the Dogecoin kick that needs to crack $0.1

The digital assets have already lost more than $2,000 over the past two days. It also fell below the 50-day moving average again, the same technical level that was one of the bearish indicators in the previous markets.

For bitcoin to establish an uptrend, it must break above $24,800 and continue at that level. Otherwise, there is likely to be a rapid price drop over the next couple of days.

Featured image from Forbes, chart from TradingView.com

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1 thought on “Bitcoin Enters August With Losses, Has It Set The Tone For The Month?”

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