Bitcoin Price Analysis August 2018. Bitcoin got through August with mere double-digit losses. Between August 1st – 31st, bitcoin was only down 10.1%. A closer look into the action may actually suggest the state of bitcoin could be heading toward better times.
Bitcoin entered August at a price of $7,727, before closing out the month at $6,944. Despite this, losses could have been far bigger if BTC didn’t recover from the six-weeks lows that dipped below $5,900 on August 14th.The bitcoin market experienced a solid 2-way market environment this month.
Sellers mostly dominated the first half of August. This was mainly a result of the US Securities and Exchange Commission’s (SEC) disapproval of a Winklevoss bitcoin exchange-traded fund (ETF) in July. However, by mid-August, the technical charts were calling for a corrective rally as a result of the bears losing their momentum. Following this, Bitcoin picked up a bid and moved up to over $6,400 by the third week of the month. Thus, the short-term bullish reversal signals gained more credibility once bitcoin shrugged off the SEC’s rejection of 9 other ETF proposals made on August 22nd.
Following this, BTC/USD short positions in the futures market hit record-breaking lows. This triggered a selloff from the record high of $20,000 set in December 2017. It most likely ended due to the psychological support of $6,000. As a result, the newly emboldened bulls pushed BTC to highs of over just $7,000 in the last week of August.
Bitcoin value (12th Dec 2017 – 12th September 2018):
— Nairametrics (@Nairametrics) September 14, 2018
Even though Bitcoin took a 10% monthly loss overall, technical charts suggest there is a reason to be optimistic about what is to come next.
As indicated by the above chart, a long wick (tail) is attached to the candle following up to September. Candles with long tails are widely considered to be signs of a weakness in the current trend. It would seem as though the bears failed to knock the prices back down to June’s low of $5,755, and the bulls regained some of the ground they previously lost.
By the same token, the bears have failed to keep the price of bitcoin below the support at $6,000 three times in the last 10 weeks. In light of this, it seems safe to say that bitcoin has most likely charted a long-term bottom around $6,000. In light of this, prices have the potential to reach highs hitting around $7000 within 2 months.
This one our brief bitcoin Price Analysis August 2018. Stay tuned for bitcoin price analysis for the month of September. Comment below with your thoughts about the bitcoin price performance during August.
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