The BTC/USD pair’s monthly close at $11,655 is the second-highest ever, and bulls pushed prices to $11,920 during the Asian session
Bitcoin traded above $11,000 for most of August, briefly surpassing $12,000 before closing the month at $11,655 on August 31.
Despite setbacks in the $12,000–$12,500 range, the monthly candle represents Bitcoin’s second-highest monthly close since December 2017.
On a weekly basis, Bitcoin slipped slightly from the prior close as bears defended the $11,800 area. After opening near $11,680, price action was largely rangebound, with a move capped at roughly $600: BTC/USD dropped to a low near $11,200 and failed to break resistance at $11,800.
Bitcoin dominance also fell to 57.2% as the altcoin market recovered, driven by dramatic movements in the DeFi sector.
What’s next for Bitcoin price?
Just before the monthly close, crypto trader and technical analyst Josh Rager tweeted:
“The monthly close is coming up — the chart looks good as support is holding and the next monthly target is $13,880 and higher. Large-term expiries point to a bullish trend.”
The last time Bitcoin’s monthly close reached this level was December 31, 2017. Unlike that period, Bitcoin is currently in a clear uptrend, and a 20% rise within 30 days remains within the realm of possibility.
Bitcoin has printed higher monthly candles in five of the past six months, with June the only exception.
Fundamental trends that could support a move toward the $14,000 resistance zone include rising network activity and increasing inflationary expectations.
Active address counts have climbed in recent weeks, with daily active addresses surpassing one million on multiple days — only the second time this level has been reached since January 2018.
Miners have also grown increasingly optimistic about Bitcoin, with hash rate and mining difficulty reaching new all-time highs. Additionally, BTC/USD could benefit from expectations that the Federal Reserve may engage in further monetary easing as the economy deals with the aftermath of COVID-19.
Technically, bulls face resistance from bears in the $11,800–$12,500 zone. At present, bulls hold the edge, with prices trading above $11,900.
If bullish momentum continues, gains could extend to $12,500, with $13,000 the key level to watch. On the downside, support looks solid at $11,000 and $10,500.
