Experts advise holding crypto in August, calling the dip a healthy cooldown. Is Bitcoin gearing up for a strong comeback this month?

 

The crypto market is in a pause after a strong rally in July. August is now showing a 6.7% dip in Bitcoin, and many investors are wondering whether now is the time to sell. 

However, experts say this could be a costly mistake.

Instead of seeing this as the start of a major crash, analysts believe it’s just a cooldown. 

A Healthy Crypto Cooldown, Not Panic Selling

The crypto market cap dropped from its July high of $4 trillion to $3.67 trillion in August. While the headlines have since shown that investors should be worried, this 6.7% decline doesn’t indicate panic in the market.

According to a new report by Swissblock, indicators like Net Realised Profit/Loss (PnL) and 7-Day Spent Output Profit Ratio (SOPR) support the idea that this is a healthy correction. Both metrics are falling gradually and are showing profit-taking, not fear.

“Investors are taking profits, not exiting in fear. This is a constructive reset,” Swissblock analysts explained.

This indicates that while some traders are cashing out, they’re doing so to sell at higher prices later: Not because they expect a crash.

 Bitcoin’s Net Realised Profit/Loss vs. SOPR is showing signs of a healthy reset. | Swissblock

Bitcoin Still Following a Bullish Pattern

According to insights from Trader Galaxy, today’s price structure can be compared closely to late last year. Back then, Bitcoin bounced from $70,000 to $108,000 after successfully retesting a major support level.

Galaxy notes that Bitcoin is now in a similar “interesting spot.” This means that if history repeats, we could see a similar 50% jump. This time, it might be from current levels above $112,000.

$BTC in an interesting spot.

Last time it looked like this it was before the run from $70k to $100k. pic.twitter.com/U4GXOH2FUP

— Galaxy (@galaxyBTC) August 7, 2025

More importantly, this current support test is happening against an ascending trendline. While market conditions are currently different from last year, the technical structure is still strong.

No Signs of a Major Crypto Breakdown

Other analyses have dismissed the idea that Bitcoin will drop back to previous lows. After peaking at $109,300 in January, Bitcoin has maintained its higher lows despite the market’s volatility.

In fact, every recent swing low (like those in April, June and early August) has marked a local bottom that wasn’t revisited. This trend shows strength and continued buyer interest, even at lower levels.

Meanwhile, macro factors like the US Dollar Index (DXY) rebound and renewed tariff pressure are contributing to short-term jitters. However, experts believe that this “macro noise” is temporary and is already priced into the market.

Stay the Course, Experts Say

The main takeaway from this is that August’s pullback isn’t a scary situation that should prompt selling.

Instead of panic selling, investors should look at the bigger picture. Sentiment is still stable, and there’s no evidence of mass exits or structural weakness. Profit-taking during consolidations is a healthy pattern and is often a sign of maturity in the market.

Holding through short-term dips has historically paid off for crypto investors, especially when indicators point to incoming upside ahead.

The post Why Selling All Crypto In August Would Be A Mistake, Swissblock Says appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ August 7, 2025 6:30 pm