Bitcoin Plunges Below $50,000! End of the Bullish Cycle? Analysis for August 6, 2024

While Bitcoin reached $70,000 last week, the cryptocurrency is down more than 26% in one week. Let's analyze together the future prospects of the BTC price.

Bitcoin (BTC) Price Status

After rejecting $70,000, Bitcoin came under selling pressure, gradually bringing its price back down to $62,500. Unfortunately, this level was not able to be maintained. Indeed, Bitcoin attracted growing selling interest, which pushed its price down to $49,250 in the following days. It should be noted that this decline can be explained by poor economic results around the world, as well as significant geopolitical tensions, particularly related to Iran. Nevertheless, it is at this last price level that BTC benefited from buying interest that seems to be maintained until today.

At the time of writing, Bitcoin is trading around $56,000. As encouraging as this may seem, continued buying support will be needed to counter BTC’s short-term bearish trend. As for the cryptocurrency’s medium-to-long-term trend, while it remains theoretically bullish, it is not surprising that there is uncertainty about its future. This is because Bitcoin is making lower and lower lows and is below its annual VWAP as well as its 50-day and 200-day moving averages, seemingly ready to form a “death cross.” As for the cryptocurrency’s momentum, it is not surprising that it has been revised downward. This is reflected in the price of BTC itself as well as the oscillators being revised downward. Naturally, all of this leaves room for uncertainty in the cryptocurrency market.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Now a trainer at Family Tradinga community of thousands of self-employed traders active since 2017. You will find Lives, educational content and mutual assistance around the financial markets in a professional and friendly atmosphere.

Bitcoin (BTC) Price Hypotheses

• If the Bitcoin price holds above $53,400, we could anticipate a reach of $58,000 or even $59,000. The next resistance to consider would then be around $60,300 or even $62,300. If the bullish movement continues, we could envisage a continuation of the movement up to $65,000. At this point, this would represent an increase of close to 18%.

• If Bitcoin fails to hold above $53,400, we could see a return to around $49,300. The next support to consider, if the bearish movement continues, would be between $48,300 and $46,700. Further down, we can note the support at $45,500. At this point, this would represent a decline of around 17%.

Conclusion

Despite an attempted rebound, Bitcoin has remained under pressure due to economic and geopolitical factors. The bearish momentum persists in the short term, and uncertainty dominates for the future of the crypto market, highlighted by worrying technical signals. Thus, it will be crucial to carefully observe the price reaction at different key levels to confirm or deny current hypotheses. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that the price of cryptocurrencies can also evolve rapidly according to other more fundamental factors.