Bitcoin Trading Below $120,000 as August Sees Historical Weakness
Bitcoin (BTC) is currently trading below $120,000, with a rally losing momentum as August historically underperforms for the cryptocurrency. Key points from a report by 10x Research include:
- August has been Bitcoin's weakest month over the past decade, showing only three positive years and losses between 5–20% in others.
- Capital flows into the Bitcoin network are slowing, with total cumulative inflows exceeding $1 trillion; however, the 30-day rolling average dropped from $62.4 billion to $59.3 billion.
- The report suggests this may indicate the start of a consolidation phase, similar to previous peaks in Q1 and Q4 2024.
- Forecasts predict a potential price drop below $117,000, with support levels at $112,000 and a deeper floor around $106,000–$110,000.
- Historical outlier gains in August occurred in 2013, 2017, and 2021, coinciding with post-halving years during bull markets.
Market analysts caution that despite significant capital inflows, the actual impact on prices has been limited, raising concerns about future price movements.