• Bitcoin is off to a strong start in August, but will the bulls be able to reclaim $60k this month?

  • The year has been Bitcoin’s greatest since November 2020, when the bulls demonstrated their arrival. Analysts, investors, and traders were quite confident in the bulls’ ability to sustain newly acquired price levels in the early part of this year, and it remained so for the first quarter of the year until it wasn’t.

    The bear market that reduced Bitcoin’s price is still visible on the altcoin market, and Bitcoin has yet to make the leap that analysts think will lift the most precious asset to $100,000 for the first time since its inception.

    Why is August such an important month for Bitcoin this year?

    August, on the other hand, appears to be riding a different wave; a bullish one, to be specific. According to the report, this could be the month when Bitcoin “raises the second leg and continues the bull run.”

    According to the technical charts, Bitcoin has profited over 24 percent each day after successfully maintaining the $41,000 price mark.

    Expectedly, the fear and greed signal has turned bullish for the first time in a long time, indicating that the future for the Bitcoin market is primarily in favor of a sustained upward advance. But what are the true motivators behind these beliefs?

    Interest in and accumulation of institutional investments is increasing.

    Since the market’s inception, institutions have not ceased coming in. Although several institutions took a vacation from purchasing more Bitcoins during the bear market, they have just made a comeback, with huge Bitcoin acquisitions in the last month. While this will not alone cause Bitcoin’s price to rise, it is important for the market to retake its steps.

    According to on-chain analysis, accumulation from miners and long-term whales has been occurring since May. As a result, it is safe to assume that the fundamental state of the Bitcoin market at the moment is quite optimistic, and that $60,000 may not be an issue for Bitcoin at this time.

    Meanwhile, as Lex Moskovski points out, there are still few sell-offs taking place.

    “As evidenced by LTH-SOPR reaching this year’s low for two days in a row, some long-term Bitcoin holders are selling into this rally with no profit. One of the reasons we’re stuck at 41k is because of this. Disbelief.”

    Skeptics remain negative, signaling that it will take more than Bitcoin holding at $40,000 to persuade the market that the bulls have genuinely returned. CryptoWhale, a Bitcoin expert and skeptic, stated:

    “The surprising aspect about this bull trap is that 99 percent of Bitcoin traders believe we are still in a bull market. Fake-out rallies, which everyone usually freaks out about, are highly typical in bad markets. During the 2018 Bitcoin bubble, we witnessed them virtually every month.”

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