Bitcoin Price Prediction: August Trend Hints at $105K Dip Before Rallying

Key Insights:

• Recent Bitcoin price prediction trends for Auust hints at $105K dip before a rally to $118K.
• Bitcoin price holds $112K support after weekend drop
• August historically delivers losses, 11.4% average BTC decline

Bitcoin price is trading above $114,000 after recovering from weekend lows around $112K. Institutions are buying Bitcoin aggressively despite the strong technical resistance. However, August’s historical bearish pattern continues to weigh on short-term sentiment, placing downside pressure toward $105K.

Bitcoin Price Prediction Trends Show August’s Bearish Seasonality

August has historically been a red month for Bitcoin. Since 2017, data indicated that BTC recorded negative monthly returns in 5 of the last 7 Augusts. The average loss of those losing months is 11.4%, which means that the likelihood of a more drastic drawdown is still high.

In case Bitcoin price continued this trend, the estimated target would be in the range of $105,000. This level is also the bottom trendline of an ascending triangle pattern in the Bitstamp 1D chart. A violation of this structure would threaten the bullish macro view and potentially bring on a bigger correction.

Conversely, a stronghold of that trendline and a recovery of the $115,000 would indicate strength. In such a scenario, Bitcoin price could target the $125,000 level as the next technical resistance. The next few trading sessions will likely dictate which path BTC price takes for the rest of Q3.

Bitcoin Price Reclaimed Bull Flag Structure

Despite bearish August Bitcoin price prediction, the crypto broke back inside the bull flag pattern, reinforcing a recovery attempt.

Crypto Rover’s chart confirmed that BTC price is again trading above the lower trendline of the flag, with $114,500 as the current spot level. The structure suggested consolidation above $112,000 may set the stage for a breakout toward $118,000.

Adding to the bullish case, analyst Ali reported that the TD Sequential indicator flashed a “9” buy signal on the 12-hour chart. This structure was seen at the end of a retracement period of the bear which indicated that the trend had been exhausted. The signal was formed slightly above a key support of $112,000, making it probable that there will be a short term upside reversal.

However, resistance at $115,000 remained critical. Analyst Captain Faibik previously noted that BTC price should first close above this level with confidence to have a chance to break through $118,000 and then $125,000.

Unless this breakout occurs, Bitcoin price could remain in a range beneath macro resistance.

Amid price volatility, Metaplanet deepened its Bitcoin commitment. On August 4, the Japan-based investment firm acquired an additional 463 BTC worth approximately $53.7 million. The average purchase price for BTC was $115,895, slightly above current spot levels.

This latest acquisition raised the firm’s total BTC holdings to 17,595, placing it among the top seven publicly listed Bitcoin treasuries globally. At current prices of nearly $114,500, the portfolio is valued at over $2 billion.

Analyst Confirms Breakout Retest

Moreover, IncomeSharks also confirmed that the recent pullback in Bitcoin price retested the breakout zone at $112,000. This level held firm during the weekend correction.

The chart showed a narrow channel and a good support trendline starting from the April lows. Bitcoin price traded above this rising support, which is currently at about $114,700.

Interestingly, the analyst pointed out that the accumulation continued to be bullish so long as BTC price was above the trendline.

The analyst projected a potential rally to $124,000. This aligned with the past compression zone breakout target. In the short term, the situation is bullish provided that the support at $112,000 holds.