‘Nothing To Do Until October’

Bitcoin could also be caught in limbo till October, in accordance with crypto analyst Josh Olszewicz, who delivered a sobering evaluation of the present market setup throughout his August 3 video evaluation. The veteran dealer described Bitcoin’s technicals and seasonal context as basically uninviting, cautioning that “there’s nothing to do” till a extra compelling risk-reward profile emerges—doubtless not earlier than This fall.

Bitcoin Bulls On Pause

Olszewicz started by referencing final week’s Bollinger Band squeeze, a technical sample that always precedes important volatility. The squeeze resolved to the draw back following a mixture of weak US jobs information, adverse ETF flows, and escalating geopolitical tensions—together with reviews of US nuclear submarine actions close to Russia. “Markets definitely didn’t like that,” he remarked.

The ETF movement information was central to his outlook. Whereas Ethereum not too long ago noticed a resurgence in ETF inflows—contributing to considered one of its strongest Julys ever—Bitcoin’s flows flipped adverse. “Flows, if something, are what can save us in these two months of doldrums,” he stated, referring to August and September. But, the present trajectory reveals little promise of reversal. “The choice tree obtained quite a bit wider after breaking down,” he defined. “As a result of within the subsequent two months, it’s typically junk. That’s simply what it’s.”

Associated Studying

Olszewicz underscored the seasonal softness of Q3 for each equities and crypto, significantly emphasizing that traditionally, August and September are low-activity months. “Wake me up when September ends,” he quipped, reinforcing that merchants ought to anticipate little from the market till October—a month traditionally related to robust efficiency. “You don’t want to overlook October, even when October is adverse 80%. That is about possibilities.”

From a technical perspective, Olszewicz famous that Bitcoin stays in a susceptible zone after stalling on the yearly pivot round $122,000. “Regardless of this great-looking chart sample, we simply stopped lifeless chilly at $122,000,” he stated. “If we break $122,000, the subsequent degree is $150,000—that’s psychological, it’s the measured transfer, and it’s the yearly pivot.”

Nevertheless, a extra instant concern lies within the potential for a bearish TK cross on the Ichimoku Cloud, which might set off a promote sign in his system. “It’s a Pavlovian response. Bearish TK cross, you shut your longs,” he stated bluntly. “If we revisit 100 at this level, you’re going to get lots of people speaking about end-of-cycle stuff.”

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The Dedication of Merchants (COT) information from CME additional amplifies the warning. “Commercials have dropped off a cliff,” Olszewicz warned. “Not one thing you wish to see in case you’re bullish.” The information suggests a pointy discount in institutional positioning on the lengthy facet, including one other layer of headwind for the BTC worth.

Nonetheless, not all is misplaced. Olszewicz pointed to historic precedents, such because the troublesome August and September of 2023 when Bitcoin was battered by Mt. Gox distributions and German authorities sell-offs. Regardless of the noise, Bitcoin rallied in October following the approval of spot ETFs and held above the cloud for an prolonged interval. “It might appear to be the tip for a lot of, many causes, and we will nonetheless make it,” he burdened.

For merchants trying to re-enter the market, he recognized the $117K–$120K vary as a possible re-entry zone if BTC can reclaim that space inside the subsequent two weeks. “It’s as much as the bulls to carry this simply flat for 2 weeks,” he stated. “It shouldn’t be that tough to do if there are patrons on this market.”

However till then, he stays on the sidelines: “There’s simply nothing to do. It’s in no man’s land in the mean time.”

With Bitcoin in a technical holding sample, adverse flows, weak seasonality, and risk-off alerts from legacy markets, Olszewicz made it clear that forcing trades on this atmosphere might show pricey. His recommendation? Keep affected person, keep liquid, and watch October.

At press time, BTC traded at $114,517.

Featured picture created with DALL.E, chart from TradingView.com