The good times may continue this month after July effectively turned around the worst of the 2022 cryptocurrency collapse. Bitcoin (BTC) is attempting to make a short-term higher low while hinting at a number of long-term bullish reversal indicators.
Above the $23,500 resistance area, the price of Bitcoin increased quickly. The price made a convincing move above $24,000 and even broke beyond $24,500. It failed in its attempt to make a direct move toward the $25,000 opposition.
As the market showed strength in July, Bitcoin gained 27 percent, marking its greatest rise in nine months. Even a partial recovery of Bitcoin’s June losses was ineffective. However, a cautious price recovery has been occurring over the past 1.5 months.
A dip below the 200-week moving average last week was a historical anomaly and cast doubt on the long-term upward trend of cryptocurrencies. Last week’s closing price was above the 200-week moving average.
What does August Have in Store for BTC?
August is thought to be less favorable for bitcoin than July in terms of season. In the last 11 years, Bitcoin has only five times ended the month higher and six times lower. The average increase was 26%, and the average decrease was 15%. In the first scenario, BTC might finish August at around $30K, making up for the fall from June in just two months. It might be around $20K in the second case.
After selling off the assets of failed businesses in May and June, Dan Morehead, CEO of Pantera Capital, thinks that the cryptocurrency market has reached its top. According to him, nearly all DeFi protocols operated efficiently even at the height of the financial crisis, but the centralized credit-linked corporations failed.
At the time of writing, BTC is trading at $23,326 and is down by more than one percent.