Bitcoin Lost 10% in August But May Have Made Long-Term Bottom

Bitcoin is all set to end August with double digit-losses, but a closer look at the price action suggest better times lie ahead for the leading cryptocurrency.

At time of writing, BTC is trading at $6,940 - down 10.7 percent from the month's opening price of $7,727, according to CoinDesk's Bitcoin Price Index.

The bitcoin market has witnessed a solid two-way business this month.

Sellers dominated the first half as the markets reacted to the US Securities and Exchange Commission's disapproval of a Winklevoss bitcoin exchange-traded fund in late July.

While BTC is reporting a 10 percent monthly loss overall, the technical charts indicate there is a reason to be optimistic going forward.

As seen in the above chart, a long wick is attached to the current monthly candle, which is widely considered a sign of trend weakness - that is, the bears failed in their attempt to push prices back to the June low of $5,755 and the bulls regained some lost ground.

Further, the bears have failed three times in the last 10 weeks to keep the cryptocurrency below the support at $6,000.

It seems safe to say the cryptocurrency has likely charted a long-term bottom around $6,000 and hence prices could revisit July highs above $8,500 in the next month or two.

View Bitcoin's long-tailed monthly candle indicates the long-term bear market likely bottomed out around $6,000.

Disclosure: The author holds no cryptocurrency assets at the time of writing.