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The bitcoin industry had a busy month in August. Over the last four weeks, the market has seen Bitcoin and Ethereum climb collectively, breaking over important resistance marks, while popular altcoins like as Solana and Cardano have reached new all-time highs. As the month draws to a close, the impetus has dwindled in recent days.
However, this month, which has seen a few price increases in recent weeks, concludes over the weekend this time. This article will investigate the probability of another turnaround within the next 24 hours.
What August weekends look like
To give larger context, only BTC’s daily chart is analyzed here, since most cryptos follow its movement. Now, during May and June, BTC faced strong corrections over multiple weekends, recording $30,000 in one of the instances. However, this scenario hasn’t really translated into the ongoing bullish comeback phase.
As analyzed in the chart above, most of the weekend trading sessions for Bitcoin, in August, can be considered as a non-event. On 1st August, Sunday, Bitcoin corrected 4% in the charts but other than that, the market has only consolidated during weekends.
While there isn’t a clear logical reasoning behind the current market, the reduction in trading volumes could be assumed to be attributed to decreasing volatility.
Surprisingly, one other pattern observed during August, is that the market reacted strongly before the start of the weekend. Four Fridays in a row have resulted in BTC’s price going up in August. Friday marks the end for most institutional trading and the traditional market closes as well. While there is no direct correlation, BTC’s reactionary traits during Friday could be correlated to the larger financial market.
Can we expect something this week?
While volatility has been kept under control in recent days, predicting BTC’s price to move in a specific direction can never be forecast precisely. However, from a derivatives standpoint, there are fewer signs of a market rally or dump. At the moment, just 2k BTC Options are expiring on the weekend, reducing turmoil in the futures market.
However, with BTC firmly consolidating at its 20-MA on the daily chart, a transition for the largest digital currency isn’t far away.