Today in Crypto: Analyst: Bitcoin Drops to $60K in August Before Rebounding to $70K

In the current cycle, andrey Poroshin, a financial analyst at Bitbanker, an trading platform with a presence in Russia, the UAE, and Kyrgyzstan, stresses that bitcoin will retest $60K lows as excess liquidity is withdrawn to recover $70K later, a valuation still below the base cost of mining in the U.S.

Andrey Poroshin presented a new prediction about bitcoin’s price behavior in August.

Poroshin, who serves as a financial analyst at Bitbanker, an venue with a presence in Russia, the UAE, and Kyrgyzstan, expects the crypto sector to experience a downturn this month, with prices retesting the $60K level amid a lack of support from macroeconomic decisions.

He stressed that the Federal Reserve’s recent decision to maintain interest rates failed to sway the trading market in either direction, with inflation still above the target 2% level.

“Bitcoin ends July under the pressure of moderate market turbulence and the absence of new drivers from macroeconomics.

Federal Reserve has not given the markets either positive or negative signals, so participants remain cautious,” Poroshin declared.

According to his baseline scenario, bitcoin will drop to between $60K and $62K only to recover towards $70K, a level that is still below the cost of mining in the U.S., which has led some miners to pivot to the artificial intelligence (AI) data center business.

Nonetheless, he pointed to BitMEX winding down its operations as one of the catalysts for an upcoming price recovery, as the exit of weak hands from the market “traditionally coincides with the formation of reversal zones and a decrease in short—term pressure on the price.” For the foreseeable future, bitcoin is free from geopolitical shocks, as the escalation of the Iran-U.S.