Aside from last week’s move above $30,000, bitcoin has mostly consolidated below this level for the majority of August. Market volatility has eased, seemingly as a result of lower trading volumes due to the summer period. Despite this, history shows that bulls tend to return closer to the beginning of September.
Current Market Status
Bitcoin rose above the $30,000 level last Tuesday, after Moody’s downgraded the credit rating of up to ten U.S. small and medium-sized banks.
Bitcoiners typically see any negative macroeconomic news to the traditional financial market, as a positive sign for future crypto adoption.
However, following this brief rally, BTC has since declined, and has mostly traded around the $29,000 level.
Despite this, could there be stronger gains in the coming weeks?
August Outlook
At the time of writing this, bitcoin (BTC) is trading at $29,607.50, as traders once again attempted to climb towards the $30,000 level.
These hopes came as an upward crossover of moving averages was on the cusp of occurring for the first time since June 21.
Should the 10-day (red) moving average crossover its 25-day counterpart, momentum will likely turn bullish.
Looking at the chart, the relative strength index (RSI) pushed past a ceiling at 53.00, and looks to be heading towards a higher resistance of 58.00.
In the event of this taking place, there is a good chance that BTC will be trading above $30,200.
Where will bitcoin end the month? Let us know your thoughts in the comments.
