Final Week of August Turns Bullish for Bitcoin

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Final Week of August Turns Bullish for Bitcoin

While millions of Americans were getting ready to enjoy their long Labor Day weekend, Bitcoin traders were relishing a two-week bull run that pushed the world’s most valuable currency past $7,000. The highest BTC price for August 2018 was reached on August 29 at $7,124, and this represented a gain of 6.5 percent since the previous Saturday.

What Did August Mean for the Bitcoin Market

Bitcoin analysts believe that the August bull run has been purely technical, meaning that traders are following certain key indicators that suggest a support level has been hit, thereby opening buying opportunities. One of the advantages of the cryptocurrency markets is that short trading is not normally offered, thus leaving the door open for regular buy trades that push prices upward, at least until traders decide that the time is right to rake in profits by cashing out of their positions. At this time, the best way to short Bitcoin and other digital currencies is through futures contracts at the Chicago Mercantile and Board Options Exchanges.

The specific technical indicator that boosted Bitcoin in August is sometimes referred to as a “double bottom,” which in this case was triggered around the $6,000 mark. As the situation stands, technical traders will be looking for another indicator at $7,250; should this price hold for a couple of weeks, Bitcoin could reach $7,800 by late September.

Investors Keep Their Eyes Out on Market Trends

Traders will be keeping a close eye on the current bullish trend; any signs of Bitcoin heading into $6,450 territory will likely cause a panic. It is too early to call the current move a rally because the fundamentals are lacking. The modest gains achieved in the last couple of weeks are not indicative of a rally, but it is encouraging to see that technical traders are still attracted to the king of cryptocurrencies.

Under normal circumstances, a Bitcoin bull run should also boost the rest of the cryptocurrency market, but this has not been the case this time around. Ethereum and Ripple have failed to garner enthusiasm among traders, and other majors such as Bitcoin Cash are mostly trading sideways. This observation bolsters the argument about the current Bitcoin surge being a highly technical play.

For a Bitcoin rally to materialize, this digital currency will need some very positive developments that fundamental analysts can truly embrace. Wider acceptance of Bitcoin by a convenience store chain, for example, would result in an influx of new buyers, thereby igniting the early stages of a rally towards the $10,000 mark.

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