After several weeks of testing the $30K zone, bitcoin has come down to more than 10%. Let’s see the future prospects for the parent cryptocurrency.
Status of BTC
As we discussed in the analysis on August 15, the barometer of low volatility in the price of bitcoin has prevented the return of the latter. Indeed, hitting a low, it ended up bouncing back, unfortunately entering bitcoin below $26K. The price of the parent cryptocurrency now forms a double top. It lies below the 50 and 200 daily moving averages, gradually tilting south. The RSI or the MACD meanwhile, demonstrate a bearish momentum. Each of these elements can naturally challenge buyers.
The current technical analysis was carried out in collaboration with Elie FT, passionate investor and trader in the cryptocurrency market. Today a trainer at Family Trading, a community of thousands of own-account traders active since 2017. You will find Lives, educational content and mutual aid around the financial markets in a professional and warm atmosphere.
According to data platform CryptoQuant, bitcoin saw a liquidation of over $230 million in long positions. This is a record since the beginning of 2023. This may suggest selling pressure that should not be underestimated if it is not to the benefit of buyers.
Conveniently, open interest has been scaled back. According to this same platform, the equivalent of 2.8 billion dollars has vanished from the market. This demonstrates a marked decrease in investor activity on BTC, which may contribute to weakening anticipation of future bitcoin movements.
What if all that wasn’t enough?
We can see using the liquidity map available on Decenter that there are many buy volumes located below the current price of BTC. These range in price range roughly between $12K and $25K. The peak of these buying volumes being at $22,700, one can understand the importance of this level.
Bitcoin Price Assumptions
. If the price of Bitcoin comes to regain color by exceeding the resistance of $28K, we could anticipate a bullish continuation to the psychological threshold of $29-30K. The next resistance to consider at this point will be the Bitcoin price 2023 ATH, approximately at $32K.
. If the price of Bitcoin fails to rebound from the $25K zone, one could consider testing the $24K zone. Unfortunately, if this last support does not hold, the price of BTC could attack more or less quickly towards the $23-22K zone.
Conclusion
It is now done. Bitcoin to regain its own volatility. The price of BTC is now based on supports that have every interest in being defended at the risk of continuing its downward momentum. It will be important to carefully observe the reaction of the price on the different identifiable levels to confirm or not the different hypotheses made. Beware of potential “fake outs” and “market squeezes” in each situation. In addition, it should be remembered that these scenarios are based solely on technical analysis. The price of cryptocurrencies can move more or less quickly, depending on other more fundamental factors
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