Bitcoin: today the price is slightly down
Today the Bitcoin chart is slightly down, while during the night traders tried in vain to bring its price above 65,000 dollars.
The crypto is down by 1.86% with prices dropping to the 63,800 dollar zone within a few hours, awaiting the next market movement.
Last week Bitcoin had grown by 9.9%, further narrowing the gap from the crash in the early days of August.
The forecasts remain bullish for the last quarter of the year.
Let’s see all the details below.
Summary
- The trend of prices during the past week: optimism driven by macro data
- Today quotation in red for Bitcoin
- The dip of today does not scare Bitcoin traders
The trend of prices during the past week: optimism driven by macro data
While today the quotation of Bitcoin is affected by a slightly bearish spirit, the trend of prices during the past week had expressed the maximum optimism.
The main cryptocurrency in the sector closed the last weekly candle with a 9.91%, marking the second-best performance since March.
Thanks to the release of good macroeconomic data in the USA that suggest a season of rises for the markets, Bitcoin has reclaimed the key level of 60,000 dollars.
After the last meeting of the Federal Reserve, it emerged that even the president Jerome Powell is in favor of starting interest cuts on government bonds from September.
The result is that now the forecasts regarding the FED’s strategies for the end of 2025 predict 9 cuts with a reduction of the yield by 3%
This type of dynamic generally favors a bull quotation for speculative markets, such as that of Bitcoin.
All eyes are on the FOMC meeting on September 18, where rates could drop by 25 or even 50 basis points in one go.
GM ☕️
Fed Funds Futures are already pricing in a total of 9 cuts and a terminal rate of 3% by the end of 2025.
Have a great day. pic.twitter.com/2DlQd1ClDx
— André Dragosch, PhD | Bitcoin & Macro ⚡ (@Andre_Dragosch) August 26, 2024
In the meantime Bitcoin is preparing to close the monthly candle with the last 6 days of August that could change its color from red to green.
Currently in the monthly the crypto loses about 1.36%, however recovering a stratospheric 30% of the quotation from the spike to 49,000 dollars.
This is a signal of strength in the chart that highlights the presence of strong buying pressure from the demand, enough to absorb such a violent dip.
Let’s see if September will give us the break of 70,000 dollars and project us towards another bullish leg up of the cryptocurrency
Today quotation in red for Bitcoin
After the excellent performance of the last 7 days, today Bitcoin opened the week with a slightly lower quotation, marking a decrease of 1.86%.
The prices dropped to 63,800 dollars after they reached 65,000 dollars during the night with an hourly candle from engulfing bearish.
Now Bitcoin is close to the EMA 50 on the 1h time frame, with the chart drawing a typical bearish pattern known as “Bart Simpson”.
This type of model tends to highlight a scenario where prices, after an initial rise followed by a period of sideways movement (with two symmetrical tops), begin the downward phase.
In our hypothetical case, the quotation of Bitcoin could return to below 62,000 dollars in the short term, unless the pattern is invalidated.
The popular trader CrypNuevo agrees with this theory and believes it could easily come true by liquidating the high-leverage longs. Here are his words in his speech on X:
“It would make sense because they would have filled the wick, stopping short positions and trapping some breakout traders. Then the drop would eliminate delta liquidations with a long squeeze to support. ”
All eyes are now precisely focused on the 63,300 and 62,500 dollar levels, where a break of these could trigger a flow of liquidations.
According to Coinglass data, in those price ranges we find about 400 million dollars of bull positions ready to be liquidated.
On the other hand, the resistance of 65,400 dollars limits the escapes of the bulls, and delimits the short-term area that should be broken to ensure the continuation of the bullish trend.
Here we find 150 million dollars of short that could be wiped out by the unpredictable volatility positive of the cryptocurrency.
Let’s see how Bitcoin will react to this stimulus and how its price will vary in the near future after today’s temporary pause.
Source: https://www.coinglass.com/pro/futures/LiquidationHeatMap
The dip of today does not scare Bitcoin traders
Despite today’s Bitcoin price not being the best, cryptocurrency traders remain bull for the last quarter of the year.
As already mentioned, the change in monetary policies of the FED should bring fuel to the markets ready to fuel a new leg up on all risk-on markets.
Investors seeing the slowdown of inflation and the return to “quantitative easing” might sell a lot of obbligazioni and pour the capital into stocks or crypto.
Precisely for this reason, from September onwards with a good probability the trend of Bitcoin prices will hold bullish surprises.
Some experienced speculators like user X “ELM”, have stated that Bitcoin could easily drop to the 62,700 dollar zone, and then resume the bull run
The retest could therefore be followed by a break of the local resistances and by an approach to 70,000 dollars.
Here’s my $BTC plan for this week.
Retest 62,700 and up only to grab 71k liquidity. pic.twitter.com/cdzQ3qwXQy
— Trader ELM (@FerasElma) August 25, 2024
Another crypto trader says that before unleashing bullish ambitions, it is necessary to observe a recovery of $65,700, which would offer a clearer graphical view.
Other experts like the analyst of Rekt Capital, agree that the quotation of Bitcoin could mark an important positive performance from now on,
According to what has been stated, the crypto is resynchronizing with the cyclical trends of prices post-halving, after having beaten the historical highs with early timing.
As he states himself : “The importance of this technical event cannot be underestimated”
Now it could trigger the classic bull leg up in the months following the halving of the block reward, aiming for a break of the all-time highs
By the end of the year, the forecasts are largely bullish, with targets ranging from 80,000 dollars up to the famous 100,000 dollarsalready predicted months ago by Standard Chartered.
Fasten your seat belts traders.
