In a volatile market, Bitcoin in July showed a small positive candlestick, showing both resistance and support, and remained volatile overall. This trend is reflected in the slightly downward-sloping parallel channel in which it is located. The entire trading range shows a decrease in trading volume, which is a common feature of a volatile market. This is one of the reasons why I personally believe that the market is unlikely to experience a sharp decline.
From the monthly chart, we can see the overall trend of the market more clearly. It is currently showing signs of a bull market, with increased trading volume during the upswing and decreased trading volume during the downswing. This is a healthy upward trend. The current market performance does not show signs of a big drop, but seems to be accumulating strength for further gains. In the absence of a change in trend, some small pullbacks are normal. Considering the complexity of the current crypto market, the difficulty of making money is expected to increase.
Market trends can be roughly divided into three categories: up, down and oscillation, among which oscillation occupies most of the time. Although the trend market is short, the waiting time is long, which is one of the reasons why many traders not only fail to make profits but lose money.
When planning at the bottom of the market, many people initially intended to invest in the long term, but months of volatility gradually eroded their patience, causing their actions to deviate from the initial trading strategy, and the result was naturally a loss.
In July, Bitcoin briefly hit the $70,000 mark but failed to stabilize, indicating huge pressure from above. Although the trading volume in July did not increase significantly, it has increased compared to June, and the long lower shadow indicates strong support from below.
August will be a critical month for the market. Judging from the trend and form, Bitcoin is likely to break through its historical high. This judgment is mainly based on monthly analysis, and the specific details need to be further observed with the help of weekly or daily lines.
In general, if the general direction is correct, there is no need to worry too much. The fact that the market did not fall further in July is a positive signal, so you should have more confidence in the market in August. Your persistence and waiting will eventually pay off. In trading, the key is not only to observe the appearance but also to understand the essence. The four-year cycle of bull and bear alternation is exactly this essence, and the shock callback in the middle is just an appearance. Ignore the appearance to capture the desired results in the ever-changing market.
The above analysis represents only personal opinions and does not constitute investment advice.
