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Bitcoin price dips 14% in August as trader warns of ‘macro drop down’

Bitcoin price dips 14% in August as trader warns of ‘macro drop down’

Bitcoin (BTC) has sealed its worst August performance since 2015 after the monthly candle closed down 13.9%.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Weekly candle “doesn’t look good”

Data from Cointelegraph Markets Pro and TradingView confirms that BTC/USD finished the month at $19,990.

A knock to bulls’ efforts to stabilize spot price, the August close was only the second monthly candle finish below the $20,000 mark (depending on the exchange used) since late 2020.

BTC/USD 1-month candle chart (Bitstamp). Source: TradingView

While preserving June’s close as the macro low on the monthly chart, the performance led traders into firmly bearish territory. Among them was Crypto Tony, who warned that the stage was set for deeper losses going forward.

His outlook, he told Twitter followers on the day, saw him “leaning towards a macro drop down.”

Caleb Franzen, senior market analyst at Cubic Analytics, added that the first weekly candle of September is already shaping up to take Bitcoin further into the red.

“The weekly candle for Bitcoin doesn’t look good, though it’s still very early in the week,” he warned alongside an explanatory chart.

“The long top wick and selloff is objectively a bad sign, if it closes this way. Particularly if it turns into a red candle. Something to watch for the rest of the week.”

Others saw more optimistic implications in the monthly close.

Popular Twitter account Dave the wave highlighted moving average convergence/ divergence (MACD) as having predicted the comedown from local highs above $25,000 and now conversely favoring relief for bulls.

Fellow trader Johal Miles reiterated the potentially bullish knock-on effect of an MACD cross from mid-August, one which nonetheless had seen “no continuation yet.”

BTC/USD monthly returns chart (screenshot). Source: TradingView

New “historical lows” for hodl metric

One on-chain indicator in particular meanwhile reinforced the…

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