August’s Bitcoin Price Prediction: BTC Will Face Some Serious Tests in the Upcoming Weeks

Bitcoin was trading under $20,000 per unit exactly one month ago today as the cryptocurrency markets continued to respond to rising inflation levels and central bank policies. The world’s most popular cryptocurrency token, however, has risen to $23,000 a month later despite consumer prices reaching multi-decade highs. In light of this, what direction may bitcoin go over the next weeks?

Present market situation
The price of bitcoin (BTC) primarily consolidated in July between a floor of $18,900 and a ceiling of $23,600 due to increased volatility in the cryptocurrency markets due to the possibility of a 75 basis point (bps) rise by the Fed.

Since then, the Federal Reserve has raised rates twice in a row, by 0.75 percent in July and 0.75 percent in August.

This occurred as worries about an impending global recession increased and inflation in the United States rose to its highest level in more than four decades.

Despite this, bitcoin has quietly increased as the market’s ongoing uncertainty has begun to gradually dissipate.

Although there are still worries about the severity of a recession, some of the traders’ reservations about the Fed’s strategy have been addressed.

This has led to an increase in price strength for BTC over the previous two weeks, with the relative strength index (RSI) presently tracking at 54.37 after reading 29 on July 5.

August Forecast
Just hours after the most recent non-farm payrolls data, BTC/USD is now trading at $23,019.32 as of the time of writing this research.

Payrolls for July came in at 528,000 last month, versus predictions of 250,000, allaying worries about a possible downturn in the U.S. job market.

This may be advantageous for bitcoin bulls, who have recently adopted a risk-off stance due to worries about a probable global recession in the middle of the inflation issue.

Investors now have more cause to be positive as the market picture starts to gradually change, despite the fact that these worries will persist.

In contrast to WTI oil, which this week fell to its lowest level since before Russia’s invasion of Ukraine in February, gold this week increased to a one-month high vs the dollar.

BTC is now going to be put to some serious tests in the next weeks, with the biggest one being whether it has the momentum to go beyond a crucial ceiling of $24,700.

If it succeeds, bitcoin may go past $25,000, setting up bulls for a run above $30,000 in September.

Leave a Reply