The Bitcoin price had a successful performance in July, jumping to a record high of $123,200, a 17% increase from its monthly opening price. It has erased some of those gains and was trading at $114,900 today, August 1. This article conducts a BTC price prediction for August and whether it is a good buy.
Bitcoin ETF inflows surged in August
Bitcoin price continued soaring in July as demand from American investors jumped. Data shows that the spot Bitcoin ETFs had inflows worth over $6 billion in July, the biggest monthly increase since November last year when they added $6.49 billion.
These ETFs now hold over $152 billion in assets, with BlackRock’s fund having over $86 billion in net assets. If this trend continues, it means that the fund may cross the $100 billion milestone this month. It also means that the fund will cross the SPDR Gold Shares ETF (GLD), which has $105 billion.
Fidelity’s FBTC ETF has had a cumulative inflow of $12.4 billion, bringing its total assets to $24 billion. It passed the Grayscale Bitcoin ETF (GBTC), which has $21 billion in assets after having over $23.6 billion in outflows.
The other top Bitcoin ETFs in terms of inflows are Ark Invest’s ARKB, Grayscale, and Bitwise’s BITB.
The other notable catalyst for BTC price was the ongoing rise of Bitcoin treasury companies. There were less than 60 such companies early January. Today, the number has jumped to over 100.
Strategy continued to accumulate Bitcoins and now has 628,791 of them. It is followed by MARA Holdings, which has 50,000 coins. The other large names with BTC in their holdings are XXI, Bitcoin Standard Treasury Company, Riot Platforms, Trump Media & Technology, Metaplanet, and Galaxy Digital.
These treasury companies now hold 954,813 coins, currently valued at over $112 billion. This growth is expected to continue this month.
The ongoing Bitcoin accumulation is coming at a time when the supply in exchanges is in a strong downtrend. Santiment data shows that there are now 1.2 million coins in exchanges, down from 1.5 million when the year started.
Bitcoin price forecast for August
BTC price chart | Source: TradingView
Historically, August has been a challenging month for Bitcoin. It dropped by 8.6% in August last year, 11.2% in 2023, and 13.8% in the previous year.
The daily chart shows that the BTC price peaked at $123,200 in July and then pulled back to $114,846 today. On the positive side, the coin has formed the highly popular bullish flag pattern. This pattern comprises of a vertical line and a descending channel.
BTC remains above the 50-day and 100-day moving averages, a sign that bulls are in control. Therefore, the most likely scenario is where it bounces back in August and possibly hit the important resistance point at $140,000. A drop below the support at $111,000 will invalidate the bullish outlook.
The post Bitcoin price prediction for August: buy or sell? appeared first on Invezz
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