Bitcoin Momentum Hits Speed Bump as August Sees Weaker Price Action

Bitcoin's price momentum has been steadily increasing over Q2, with the cryptocurrency up over 10% and reaching its highest wick at $66k. However, this upward trend may be nearing its end as August shows weaker momentum.

The chart from TradingView (BTC/USDT) reveals that in March and April, Bitcoin closed up over 1.84% and 11.8%, respectively. But as momentum weakened, it closed May and June down over 3% and 20%, respectively. If this pattern repeats, a similar loss of momentum could be seen through Q3 and into Q4.

On-chain data is also hinting at a similar setup, with rising Bitcoin Open Interest but weak spot demand. This suggests that the current price action is being driven more by leverage than spot buying, which could lead to another late-Q2 style correction if spot demand fails to pick up.

The U.S.-based investors' lack of aggressive buying is putting BTC's resilience to the test. According to CryptoQuant data, Bitcoin's Coinbase Premium Index has dropped over 160% this week alone, marking its sharpest decline in August so far.