Bitcoin Rebound, Crypto Market Recovery Coming? Analysis for August 13, 2024

Bitcoin continues its rise and validates a promising technical breakout. Let's take a look at the future prospects for the BTC price.

BTC logo, red and blue background with an angry red bear and blue bull on both sides. At the top of each, we can see each person's power bar.

Bitcoin (BTC) price situation

After rebounding from the $60,000 support, Bitcoin crossed $64,500. It then quickly exceeded its daily resistance, identified around $66,500. From a chartist point of view, all of these fluctuations made it possible to form a cup with handle pattern, suggesting a bullish future. Furthermore, this phenomenon confirms the return of a medium-term upward trend for the cryptocurrency. Subsequently, the bullish momentum was sustained until reaching $69,500. Unfortunately, this Monday, October 21, a selling movement slowed down the latter. It should be noted that this decline took place from the first resistance of the monthly pivot points.

At the time of writing, the price of Bitcoin is trading around $67,800. The short-term trend has thus been called into question. Nonetheless, it is interesting to note a recent rebound from the $66,700 support. Although this decline may be worrying, it does not call into question the medium and long-term upward trend of Bitcoin. Indeed, Bitcoin is still positioned above its 50 and 200 day moving averages, which seem to be gradually moving upwards. Concerning the dynamics of the cryptocurrency, it was revised upwards before subtly falling back at the start of the week, as evidenced by its oscillators as well as the price of Bitcoin itself.

BTCUSD Daily ChartBTCUSD Daily Chart
BTCUSD Daily Chart

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

Focus on derivatives (BTCUSDT)

The open interest of BTC perpetual contracts as well as its CVD have generally evolved in line with its underlying. This shows a growing interest from speculators, mainly in buying. However, the recent drop in interest suggests selling pressure. As for funding rates, we can see that they remain positive, which illustrates persistent upward pressure on Bitcoin perpetual contracts. As for liquidations, they are mainly for purchases at the start of the week, although they are not significant.

Bitcoin Open Interest / Liquidations / CVD & Funding rateBitcoin Open Interest / Liquidations / CVD & Funding rate
Bitcoin Open Interest / Liquidations / CVD & Funding rate

The liquidation heatmap indicates that BTC/USDT is currently in contact with a significant liquidation zone, located between $68,000 and $66,000. Buying interest in the cryptocurrency appears to have been there, with the price having rebounded. Now, the most significant liquidation zone is just above the current price, around $70,000. Higher up, we can note that located above $72,000. Below the current price, it is possible to notice a subtle zone between $64,000 and $63,000. Further down, we note the area close to $61,600. The price approaching these levels could result in a massive triggering of orders, increasing the risk of increased volatility for the cryptocurrency. These areas therefore represent a crucial point of interest for investors.

BTC Liquidation Heatmap BTC Liquidation Heatmap
BTC Liquidation Heatmap

Bitcoin (BTC) price forecasts

  • If the price of Bitcoin remains above $66,500we could anticipate a return towards $69,500. Crossing this zone could lead to $70,000. If the upward movement continues, we could envisage a progression up to $72,000. Above, we can note the ATH of Bitcoin, i.e. approximately $73,760. Reaching this last level would represent an increase close to 8%.
  • If Bitcoin fails to stay above $66,500we could consider a return towards $65,000even $64,000. The next support to watch, in case the bearish movement continues, would be around $62,000even $61,600. Further down, we can note the support of $60,000. Reaching this last level would represent a drop of approximately 11%.

Conclusion

Despite a temporary decline at the start of the week, calling into question Bitcoin's short-term trend, the cryptocurrency's upward momentum remains intact, supported by technical elements confirming a positive medium and long-term trend. While this fuels optimism, it remains essential to carefully monitor price reaction at key levels in order to validate or adjust current forecasts. Finally, remember that these analyzes are based solely on technical criteria, and that the price of cryptocurrencies can evolve quickly depending on other more fundamental factors.

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