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Why Selling Crypto in August Could Be a Costly Mistake — Experts Explain

2 mins
Updated by Ann Maria Shibu
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In Brief

  • Crypto’s 6.7% dip in August marks a cooldown, not collapse, as profit-taking increases without panic selling signs.
  • Analysts see altcoins nearing a “Breakout Zone,” signaling early positioning before broader momentum returns.
  • Experts warn that selling now could miss rebounds, with macro noise likely short-lived and sentiment stabilizing.
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The crypto market capitalization in August has not continued the streak of new highs like in July. The rally has stalled as long-dormant whales awaken and traders lean toward profit-taking.

This raises an important question: Should investors sell in August and wait for new lows? Recent expert analysis offers deeper insight.

Why Selling in August Might Be a Big Mistake

Compared to the $4 trillion market cap peak in July, the market has corrected by 6.7%, now at $3.67 trillion.

Although this isn’t a major correction, new developments in August have sparked concern. These include awakened whales, a slowdown in ETF inflows, renewed tariff pressure, and a rebound in the DXY (US Dollar Index). Together, these elements raise fears of a stronger August correction.

However, for Bitcoin, Swissblock’s latest report sees the recent price drop as a positive phase. It views the pullback as a necessary cooldown after the previous price surge.

The report focuses on two key indicators: Net Realized Profit/Loss (PnL) and 7-Day SOPR (Spent Output Profit Ratio). Both metrics have been falling, but not alarmingly.

Bitcoin Net Realized Profit/Loss (PnL) vs 7-Day SOPR. Source: Swissblock
Bitcoin Net Realized Profit/Loss (PnL) vs 7-Day SOPR. Source: Swissblock

“This correction is a healthy cooldown, not structural weakness. Net Realized PnL is dropping sharply, selling intensity is low. SOPR is drifting lower, not collapsing. Investors are taking profits, not exiting in fear—they want to sell higher. This is a constructive reset,” Swissblock noted.

Although the report doesn’t predict a specific price level for a Bitcoin rebound, other analysts believe BTC might correct to around $95,000 before recovering.

For altcoins, the altcoin market capitalization (TOTAL3) has dropped over 10%, falling from $1.1 trillion in July to $963 billion in August.

Yet a report from Altcoin Vector maintains that altcoins remain highly promising.

Altcoins Quadrants. Source: Altcoin Vector.
Altcoins Quadrants. Source: Altcoin Vector

The report uses a quadrant chart that segments the altcoin cycle into four phases. Since July, the chart has moved counterclockwise and is now heading toward the “Breakout Zone.”

“Smart capital rotates here, before the crowd sees it. Momentum is turning, structure is stabilizing. This isn’t a breakout: now pre-positioning begins,” according to Altcoin Vector.

Crypto analyst VirtualBacon also explained why selling in August could be a costly mistake.

He acknowledged that while some events may seem concerning, there’s no need to panic because:

Moreover, market sentiment has cooled down. In July, it was firmly in the “Greed” territory, but now it has retreated to a “Neutral” zone. Since February, the market has not entered a state of “extreme greed,” which is generally regarded as the ideal time for making selling decisions.

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Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Nhat Hoang
Nhat Hoang is a journalist at BeInCrypto who writes about macroeconomic events, crypto market trends, altcoins, and meme coins. With experience tracking and observing the market since 2018, he is able to grasp the stories in the market and express them in an accessible way to new investors. He graduated with a bachelor’s degree in Japanese from Ho Chi Minh City University of Pedagogy.
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