Crypto analysis: What will the crypto market scenario in August

Crypto market analysis for August

The recent surge in Bitcoin suggest that investors are felling very positive about BTC future

 

The crypto market ended July on a high note, with Bitcoin's sentiment reaching bullish levels as it neared the significant 70K mark. This surge in optimism suggests that investors were feeling very positive about Bitcoin's future. However, when there is such a strong wave of positive sentiment, it often leads to a price correction. So, in the first days of August, Bitcoin might experience some price fluctuations. According to Santiment, a reliable (FOMO) indicator showed that this was the best "fear of missing out" signal in 2024.

July's end saw a shift in sentiment after the Federal Reserve kept interest rates steady at 5.25%-5.5%. This announcement led to a decrease in social activity around Bitcoin, causing its price to dip. The percentage of Bitcoin supply in profit dropped to a two-week low of 85.6%. Historically, Bitcoin tends to rebound when this metric is in the 75%-80% range. Additionally, when the 365-day Market Value to Realized Value (MVRV) ratio briefly dropped below 0% on July 4, it was a prime time to buy Bitcoin and earn a quick 15% profit.

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Some large Bitcoin holders sold their assets during this dip, adding to market volatility. These significant investors, known as sharks and whales, often start buying again at lower prices after selling for a profit. The $58K to $62K range might be a strong accumulation zone that could drive prices up again. However, if prices stay between $63K and $67K, these big holders might not see the need to accumulate more Bitcoin.

Among altcoins, Bitcoin Cash (BCH) stood out with a remarkable 40% increase from July 4 to the end of the month. This rise surprised many traders who had bet against BCH. Santiment pointed out that bearish sentiment from inexperienced traders can sometimes boost a coin's performance. If shorting activity continues, BCH might keep its upward trend in August. Meanwhile, Ethereum ETFs saw a spike in interest before their launch but then dropped sharply, reflecting a similar decline in Ethereum's price. Investors might find a good buying opportunity with ETH's current lower price.Top of Form