The analyst predicts Bitcoin to reach $126,000-$128,000, then dip to $105,000-$112,000, followed by a rebound. The analyst believes market seasonality and leveraged positions are affecting the market, and mentions PPI (Producer Price Index) data showing a meaningful inflation increase, suggesting increased fees in portfolio management. Bitcoin and Ethereum moved up rapidly before this event. A high level of leverage was created that resulted in liquidations and bearish price movement. The analyst notes the median return for August is -7.49% historically. Government drawdowns are affecting liquidations. Cycle is likely to extend to early 2026.