Bitcoin Drops to $60K in August Before Rebounding to $70K

Analyst: BTC To Retest $60K Levels In August But Will Recover Quickly

Andrey Poroshin presented a new prediction about bitcoin’s price behavior in August.

Poroshin, who serves as a financial analyst at Bitbanker, an exchange with a presence in Russia, the UAE, and Kyrgyzstan, expects the crypto market to experience a downturn this month, with prices retesting the $60K level amid a lack of support from macroeconomic decisions.

He stressed that the Federal Reserve’s recent decision to maintain interest rates failed to sway the market in either direction, with inflation still above the target 2% level.

“Bitcoin ends July under the pressure of moderate volatility and the absence of new drivers from macroeconomics. The U.S. Federal Reserve has not given the markets either positive or negative signals, so participants remain cautious,” Poroshin declared.

According to his baseline scenario, bitcoin will drop to between $60K and $62K only to recover towards $70K, a level that is still below the cost of mining in the U.S., which has led some miners to pivot to the artificial intelligence (AI) data center business.

Nonetheless, he pointed to BitMEX winding down its operations as one of the catalysts for an upcoming price recovery, as the exit of weak hands from the market “traditionally coincides with the formation of reversal zones and a decrease in short—term pressure on the price.”

For the foreseeable future, bitcoin is free from geopolitical shocks, as the escalation of the Iran-U.S. conflict is losing its influence in the crypto market. Similarly, Poroshin does not see moves in August on the passage of the CLARITY Act, keeping the market uncertain about its approval.

Finally, he predicts that September will be a month with wider price action linked to the Fed’s interest rate decisions and to a possible discussion and approval of the CLARITY Act.