Bitcoin Price Analysis August: A turning point in cryptocurrency? Explore market insights
According to a recent analysis from ARK Invest, short-term Bitcoin investors had little choice but to concede in August, as the percentage of Bitcoin supply in profit decreased by 14 percentage points.
Although many traders see substantial price drops as buying opportunities, a notable bearish move at this point in the Bitcoin halving cycle was Bitcoin’s price falling below its 200-week moving average (MA) for the first time since June 2023.
The 200-week MA generally works as a critical support level during significant downtrends, as illustrated in the chart below, and ARK predicts that any subsequent negative catalysts could see the BTC price fall as low as $20,300, where it presently resides.
Despite the crypto market’s relatively bleak short-term outlook, a more hopeful interpretation of Bitcoin’s plunge below the 200-week MA would emphasize the fact that dips below the realized price and long-term moving averages presented cyclical buying chances. Investors who accumulated when the price fell below both indicators in 2019, 2020, and early 2022 were rewarded handsomely during the next six months.
Analyst Ben Lilly recently hinted to a similar occurrence inside the Bitcoin dominance metric, claiming that “Bitcoin’s about to take the driver’s seat again.”
When comparing market participant emotions from 2018 to 2019, Lilly stated that today’s price movement reminded him of the pre-reversal phase in 2019 when “we were in the winter, everybody was low energy, nobody cared about bitcoin or crypto.”
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