Bitcoin price remained in a narrow range on August 19, continuing a consolidation phase that lasted for about two weeks.
Bitcoin (BTC) was trading at $58,000, contributing to a 2.2% decline in the global cryptocurrency market cap, bringing it down to $2.06 trillion.
Bitcoin continues to consolidate
The unspectacular price move came amid stagnant trading volumes in both spot and futures markets. Bitcoin’s open interest edged up slightly on Monday to $30 billion, but remained below this month’s peak of $36 billion.
Bitcoin’s spot market volume fell to $17 billion on Monday, a significant drop from its August 6 high of more than $120 billion. Bitcoin and other cryptocurrencies typically see low volume when they’re not in an uptrend. Amount The value of Bitcoin on Solana (SOL), Ethereum (ETH), and Base Decentralized Exchange has dropped by more than 20% in the past seven days.
Meanwhile, it appears that some large Bitcoin holders are exiting their positions. According to a post on X by Lookonchain, Ceffu, a company that provides custody and liquidity solutions for institutions, has moved $211 million worth of coins to Binance since July 31.
Despite these developments, there are some positive signs for Bitcoin. On the one hand, Bitcoin has remained stable even amidst the ongoing Mt. Gox movements. Data shows The value of bitcoin held in Mt. Gox wallets fell from 141,686 coins on January 1 to 46,164, indicating that the market absorbed these sales without a significant drop.
Another positive is the growing number of large institutions holding Bitcoin exchange-traded funds, indicating that the asset is gaining widespread acceptance. Notable firms include Goldman Sachs, HSBC, and Barclays.
Bitcoin Weekly Price Chart
The long-term charts also indicate that Bitcoin is holding up well. On the weekly chart, Bitcoin has been holding above its 100-week EMA since October of last year.
Bitcoin has also formed a broadening falling wedge chart pattern, which often leads to a bullish breakout. This pattern, which is characterized by connecting lower lows and lower highs, usually sees a big breakout when the price moves above the lower side of the wedge.
Additionally, Bitcoin has formed a cup and handle pattern, with the upper boundary at $68,830. The wedge pattern is part of this handle, and the Accumulation Distribution Indicator has reached its highest level in years.
Bitcoin monthly price chart
The monthly chart also indicates bullish potential for Bitcoin. Similar to the weekly chart, the chart shows a cup and handle pattern, with the Accumulation Distribution Indicator nearing all-time highs. Bitcoin has remained above the 50-month moving average.
A hammer candlestick pattern is also forming in Bitcoin, which features a long lower shadow, a small body, and little to no upper shadow. For this pattern to fully form, Bitcoin would need to close the month slightly below $64,000. If this happens, it could signal further upside.
In the long term, the Bitcoin price rally will be confirmed if it breaks its highest level so far this year at $73,902.
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