Analyst reveals next big buying opportunity for Bitcoin when it breaks this key level
Analyst reveals next big buying opportunity for Bitcoin when it breaks this key level 
Cryptocurrency Aug 2, 2024 Share
Bitcoin (BTC) has experienced notable volatility recently, reaching its lowest level in over two weeks at $62,498 on August 1. This decline has been attributed to a combination of factors, including reduced expectations of interest rate cuts in the United States and the distribution of 47,000 BTC from the defunct exchange Mt. Gox.
Traders are now closely monitoring key support and resistance levels to identify the next significant buying opportunity.
In this context, the analyst with the pseudonym Stockmoney Lizards noted in an X post on August 2 that Bitcoin is nearing a critical point, presenting a potential entry point for market participants.
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Technical analysis and key levels to watch
According to his analysis, the recent price movement of Bitcoin can be characterized by a classic 5-wave uptrend followed by an ABC correction, with the B wave acting as an overarching wave.
Bitcoin price analysis chart. Source: TradingView/Stockmoney Lizards
This pattern is evident on the 4-hour chart, indicating a typical Elliott Wave formation.
The immediate buying level to watch lies within the $61,880 to $62,300 range, identified as a critical support area.
This zone is reinforced by the confluence of several technical indicators, including the 1.618 Fibonacci extension, the 0.5 Fibonacci Retracement (FR), and the Value Area Low (VAL).
A bounce from this range could signal the continuation of the uptrend on higher time frames. However, if Bitcoin fails to hold this support, the next significant level to monitor is around the $56,810 mark, corresponding to the 2.618 Fibonacci extension. This level could present a new buying opportunity if the initial support fails.
On the upside, Bitcoin faces resistance at the $66,745 level, marked by the Point of Control (POC). This level has historically acted as a major resistance point, and a breakout above it, supported by strong trading volume, could indicate the next substantial buying opportunity, potentially driving Bitcoin to new highs.
Additionally, the Value Area High (VAH) around $69,885 has also served as resistance, making it a critical level to observe.
Influencing market factors
Several factors have influenced Bitcoin’s recent price movements. On July 31, the U.S. Federal Open Market Committee decided to maintain interest rates at 5.25%, aligning with market expectations.
Fed Chair Jerome Powell highlighted robust GDP growth and confidence in inflation reduction, hinting at a cautious approach to future rate cuts.
In response, investors sought safety by increasing their investments in the U.S. Treasurys, driving the five-year yield to a six-month low. This shift was further influenced by escalating geopolitical tensions and rising jobless claims.
Another significant factor was the distribution of nearly $3 billion worth of Bitcoin from Mt. Gox on July 30, which raised fears of a potential sell-off. The Bitcoin was transferred to exchanges Kraken and Bitstamp, contributing to the recent price drop as investors anticipated a substantial market impact.
Bitcoin price analysis
Bitcoin is currently changing hands at $64,546, with a modest gain of 0.12% in the last 24 hours and an accumulated increase of over 6% on its monthly chart.
Bitcoin seven-day price chart. Source: Finbold
Given the current market structure, the bias for Bitcoin is turning bullish in the short to mid-term timeframes.
In conclusion, the next significant buying opportunity for Bitcoin is expected around the $61,880 to $62,300 support level.
A successful bounce from this level could signal the continuation of the uptrend. Conversely, a breach of this support could lead to a test of the $56,810 level, providing another potential buying opportunity.
Investors and traders should keep a close eye on these key levels and market dynamics to make informed decisions.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
