In summary:
- There is only one week left in the month of August.
- $11,600 and $11,200 are two support levels to watch for the remainder of the month.
- A monthly close above any of these two levels could mean a continuation of Bitcoin’s bullish narrative.
It is Saturday once again and the daily Bitcoin trade volume has gone contrary to the popular observation of decreasing during the weekend. According to Coinmarketcap.com, Friday’s 24-hour trade volume was approximately $20 Billion. The same Bitcoin trade volume currently stands at $24 Billion thus indicating a positive anomaly in the sense that BTC could benefit from the increased trading activity.
$11,600 & $11,200, Two Bitcoin (BTC) Support Levels to Watch in Aug.
With respect to the price of Bitcoin, there is approximately one week left in the month of August and a monthly close above either $11,600 and $11,200 would be bullish for BTC. To note is that December 2017 was the last time Bitcoin opened and closed a month above both price levels. However, back then, the weekly indicators pointed towards a correction that would start in January 2018.
Checking the weekly BTC/USDT chart once again, it can be revealed that Bitcoin still has some bullish momentum and a monthly close above either $11,200 or $11,600 would help maintain Bitcoin’s bullish momentum.
Also from the weekly BTC/USDT chart above, the following can be observed.
- Trade volume is still in the green for a 7th straight week beginning in July.
- The weekly MACD is yet to show signs of exhaustion.
- However, the weekly MFI is hinting towards an overbought scenario with a possibility for sideways or a minor retracement for Bitcoin in the month of September.
It’s Q4 2016 all Over Again for Bitcoin
In an early August tweet, Bitcoin analyst Willy Woo had pointed out that the Bitcoin bull market began in April 2019 and that we are currently in a situation similar to the fourth quarter of 2016. Below is his tweet analyzing Bitcoin.
Yes. The bull market really started April 2019. What’s started recently is the early main bull phase, it’s Q4 2016 all over again, but different dynamics and themes at play. https://t.co/8fZgO3Upu9
— Willy Woo (@woonomic) August 10, 2020
Bitcoin Still Has More Room to Grow
Going by Mr. Woo’s analysis and the weekly chart shared above, it can be loosely concluded that Bitcoin still has room to grow in the markets. Given that the last bull cycle peaked in December 2017, it can be concluded that there are at least another 12 months of positive BTC market action in store for crypto traders and investors.
As with all Bitcoin analyses, BTC traders and investors are requested to have an eye out for any major world events that could skew the price of Bitcoin. Given that we are in the midst of a Global Pandemic, a major increment in COVID19 cases would slow down Bitcoin’s bullish climb or even cause a crash like in mid-March.
