Bitcoin has experienced a rocky start to August, dropping over 14% due to various macroeconomic issues, including Japan's interest rate hike, worsening U.S. employment data.
Bitcoin has experienced a rocky start to August, dropping over 14% due to various macroeconomic issues, including Japan's interest rate hike, worsening U.S. employment data, and geopolitical tensions in the Middle East. The dip below $50,000 on August 5 led to significant liquidations, wiping out over $500 billion from the crypto market.
However, Bitcoin has since bounced back, reclaiming $56,000 after finding support around $54,000, marking a 2.5% increase in the last 24 hours. This recovery has sparked optimism among analysts who anticipate further gains.
Analysts at Kaiko observed a positive trend in the U.S. crypto exchanges, such as Coinbase, Gemini, and Kraken, where cumulative volume delta (CVD) indicated that buying volume surpassed selling. While offshore exchanges like Binance and OKX saw strong selling, the positive CVD on U.S. platforms suggested that some traders seized the opportunity to buy during the dip. The recent drop below $50,000 marked a 23.7% decline from Bitcoin’s opening on April 20, the day of its halving event.
Veteran trader Peter Brandt compared this correction to the 2015–2017 cycle, predicting the potential for a "new bull cycle high" in the coming weeks if history repeats itself. Titan of Crypto believes Bitcoin is in its "final capitulation" phase after the recent flash crash, with projections indicating potential upside beyond $90,000.
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