Towards the conclusion of August, Bitcoin validated an overextended decline in its monthly stochastic indicator, a warning sign that has historically coincided with market pinnacles.
The report noted that the news of SpaceX, led by Elon Musk, writing off a portion of its Bitcoin holdings in the previous quarter, played an added role in fueling the correction within the cryptocurrency markets in August.
The relative strength index of Bitcoin has significantly fallen below 30, marking its most pronounced oversold reading since March 2020.
Bitcoin experienced a decline of more than 10% in the previous week due to the surge in the yield of the 10-year inflation-indexed security, marking its highest point since 2009.
Recently, the correlations between cryptocurrency and stock market movements have taken a downturn.
The recent Australian investigation targeting Binance employees outside their workplace is just one of many legal challenges confronting the world's largest cryptocurrency exchange.
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Bitcoin prices have temporarily halted, finding support at the $30,000 level.
The projection aligns with Bitcoin's historical pattern of experiencing significant growth in the months following a halving of mining rewards. The fourth halving is scheduled to take place in the early months of next year.
One portfolio manager suggested that Bitcoin's bullish momentum is unlikely to persist as fiat liquidity measures continue to decline.