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Bitcoin could also be caught in limbo till October, in response to crypto analyst Josh Olszewicz, who delivered a sobering evaluation of the present market setup throughout his August 3 video evaluation. The veteran dealer described Bitcoin’s technicals and seasonal context as basically uninviting, cautioning that “there’s nothing to do” till a extra compelling risk-reward profile emerges—probably not earlier than This fall.
Bitcoin Bulls On Pause
Olszewicz started by referencing final week’s Bollinger Band squeeze, a technical sample that always precedes important volatility. The squeeze resolved to the draw back following a mix of weak US jobs information, damaging ETF flows, and escalating geopolitical tensions—together with studies of US nuclear submarine actions close to Russia. “Markets actually didn’t like that,” he remarked.
The ETF circulation information was central to his outlook. Whereas Ethereum not too long ago noticed a resurgence in ETF inflows—contributing to one among its strongest Julys ever—Bitcoin’s flows flipped damaging. “Flows, if something, are what can save us in these two months of doldrums,” he mentioned, referring to August and September. But, the present trajectory reveals little promise of reversal. “The choice tree received so much wider after breaking down,” he defined. “As a result of within the subsequent two months, it’s usually junk. That’s simply what it’s.”
Associated Studying
Olszewicz underscored the seasonal softness of Q3 for each equities and crypto, notably emphasizing that traditionally, August and September are low-activity months. “Wake me up when September ends,” he quipped, reinforcing that merchants ought to anticipate little from the market till October—a month traditionally related to robust efficiency. “You do not need to overlook October, even when October is damaging 80%. That is about possibilities.”
From a technical perspective, Olszewicz famous that Bitcoin stays in a weak zone after stalling on the yearly pivot round $122,000. “Regardless of this great-looking chart sample, we simply stopped lifeless chilly at $122,000,” he mentioned. “If we break $122,000, the subsequent stage is $150,000—that’s psychological, it’s the measured transfer, and it’s the yearly pivot.”
Nonetheless, a extra speedy concern lies within the potential for a bearish TK cross on the Ichimoku Cloud, which might set off a promote sign in his system. “It’s a Pavlovian response. Bearish TK cross, you shut your longs,” he mentioned bluntly. “If we revisit 100 at this level, you’re going to get lots of people speaking about end-of-cycle stuff.”
Associated Studying
The Dedication of Merchants (COT) information from CME additional amplifies the warning. “Commercials have dropped off a cliff,” Olszewicz warned. “Not one thing you wish to see in case you’re bullish.” The info suggests a pointy discount in institutional positioning on the lengthy aspect, including one other layer of headwind for the BTC worth.
Nonetheless, not all is misplaced. Olszewicz pointed to historic precedents, such because the tough August and September of 2023 when Bitcoin was battered by Mt. Gox distributions and German authorities sell-offs. Regardless of the noise, Bitcoin rallied in October following the approval of spot ETFs and held above the cloud for an prolonged interval. “It could possibly appear like the tip for a lot of, many causes, and we are able to nonetheless make it,” he careworn.
For merchants seeking to re-enter the market, he recognized the $117K–$120K vary as a possible re-entry zone if BTC can reclaim that space throughout the subsequent two weeks. “It’s as much as the bulls to carry this simply flat for 2 weeks,” he mentioned. “It shouldn’t be that tough to do if there are consumers on this market.”
However till then, he stays on the sidelines: “There’s simply nothing to do. It’s in no man’s land in the intervening time.”
With Bitcoin in a technical holding sample, damaging flows, weak seasonality, and risk-off alerts from legacy markets, Olszewicz made it clear that forcing trades on this surroundings may show pricey. His recommendation? Keep affected person, keep liquid, and watch October.
At press time, BTC traded at $114,517.
Featured picture created with DALL.E, chart from TradingView.com