Why Bitcoin is at risk of plummeting in August?
At the beginning of August, investors are wondering if Bitcoin will again experience a sluggish summer. Historically, August has been a slow month for the crypto asset, marked by a significant drop in activity and transaction volumes. This trend is confirmed by the latest Coinbase analyses, which highlight a notable decrease in investor engagement during this period.
Historical Analysis of Bitcoin’s Price During the Month of August
The latest Coinbase report reveals a significant drop in Bitcoin transaction volumes for this August. This decline, which began at the start of the month, continues a trend observed the previous year. In August 2023, a 19% reduction in Bitcoin spot transactions had already been recorded. Analysts have noted that this trend is not an isolated anomaly.
On average, over the past five years, Bitcoin has shown a 2.8% drop during the month of August. According to Coinbase analysts, this phenomenon can be attributed to various seasonal factors, including changes in investment habits and reduced participation during the summer months. This decrease is significant enough to influence market behavior, they explain.
Towards New Highs or Precarious Stabilization?
While the general trend for August seems negative, some analysts are predicting a change of course. On the social network X, analyst Michaël Van De Poppe shared more optimistic observations. According to him, a trend reversal could begin as early as mid-August. This could potentially lay the groundwork for historical highs in the following months. Poppe emphasizes that to continue its rise toward its all-time high (ATH), Bitcoin’s price should stay above the $60,000 to $61,000 range.
Currently, Bitcoin is showing signs of consolidation, remaining in a well-defined price channel while maintaining key supports. “Bitcoin is still in the channel where we have spent the last months, but staying above key supports. It looks like a breakout is getting closer day by day. Patience, until then,” notes Jelle.
In conclusion, although historical data suggests a traditionally weak August for Bitcoin, the outlook for the future of the crypto asset is optimistic. Investors will still need to closely monitor developments in the coming weeks to seize potential upward opportunities or anticipate market adjustments.
