BlockBeats reported on Aug. 2 that trader Killa said Bitcoin is entering a new monthly cycle with a strong bearish narrative already in place, a setup that he believes raises the odds of a bullish reaction at the start of the month. In his view, BTC has often moved in the opposite direction when it enters a new phase under clearly negative sentiment.
Killa said that pattern tends to fail only when a major trend change is close, citing last November as well as February and June of this year as examples. He added that Bitcoin is still trading in a range and is close to bear market lows, leaving two possible paths in the near term.
One scenario is a final drop below $57,000. The other is a rebound starting this month, followed by continued range trading. He also said that even if BTC moves lower later on, an initial 2% to 4% rise early in the month would better match the current market structure.
According to BlockBeats, trader Killa said on Aug. 2 that Bitcoin is entering a new monthly cycle with a strong bearish narrative already built into the market, making a bullish reaction at the start of the month more likely.
He said past price action shows that when BTC moves into a new phase under clearly bearish sentiment, it often sees a move in the opposite direction. Killa added that this pattern may fail only when a major trend shift is close, pointing to last November and February and June of this year as examples.
In Killa’s view, Bitcoin is still trading within a range and is close to bear market lows. That leaves two possible outcomes: a final break below $57,000, or a rebound beginning this month followed by continued range-bound trading.
He also said that even if BTC declines later, a 2% to 4% rise at the start of the month would better fit the current market structure.
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