News: Bitcoin experienced a volatile day on August 7th, dropping from intraday highs near $11,900 to test support around $11,326 before recovering slightly. Despite this short-term pullback, the long-term outlook remains bullish, supported by strong Q2 earnings from Square, regulatory clarity from the OCC allowing banks to hold Bitcoin, and a record monthly close in July. The narrative of Bitcoin as an inflation hedge against a weakening dollar also persists, alongside growing institutional and millennial interest. Evidence suggesting a new bull market is emerging, with increased smallholder addresses.

Market Probabilities: 
Bull 60% | Base 30% | Bear 10%

Recommendations: 
Short-term: HOLD
Long-term: BUY
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