As a seasoned crypto investor with a knack for navigating volatile markets, I find myself cautiously optimistic about Bitcoin’s current trend. The bull flag formation is a promising sign, but the alignment with the early August dip has me on edge. I remember the rollercoaster ride we experienced back then and wouldn’t mind skipping that particular drop this time around.
As I pen this down, Bitcoin seems to be on a downward trajectory. After the encouraging surge it experienced on August 23, it appears to be taking a breather. Despite the uptrend still being intact and the coin not being too far from $63,000, there’s no denying the possibility of sellers exerting more pressure. The potential alignment with the early August dip could set off another round of liquidation, stirring up a sense of panic.
Bitcoin Shaky, The First Two Levels To Watch
Essentially, Bitcoin has broken out in an upward trend following a bullish pattern called a ‘bull flag’, which was set after its growth spurt on August 8.
As a crypto investor, I find it encouraging that we’re still within the bullish trend of August 23, considering the volume analysis. Even though prices are slowly dipping, if trading volume stays low, there’s a good chance buyers could re-enter the market and push prices back up above $66,000.
Regardless of whether bears control Bitcoin’s price movement, one analyst on platform X advises traders to pay close attention to how prices behave at these four potential turning points. The first significant level, which was previously a support level but has become resistance due to the recent market downturn, is currently around $63,450, as indicated by the cost-basis comparison from CryptoQuant.
At this current cost, it’s common for large investors (whales) to purchase Bitcoin, according to the analyst. Whether the prices will rebound and surpass $64,000 within the next few days is yet to be determined.
In other words, having whales (large investors) in the picture is generally good news because, unlike most retailers who might panic-sell during market fluctuations, whales usually hold onto their investments for long periods of time.
If bears remain persistent and the price falls below $60,000, an analyst advises that traders should closely monitor how prices respond around $55,540. This critical level appears to be a point of support for the traders using Binance, meaning if the price drops below this point, it might spark a wave of panic selling as these traders rush to secure their funds.
Miners And Long-Term Holders: The Last Walls
At a slightly higher level, the crucial support point is expected to be around $44,400. This area is significant because it’s where most miners find their operations profitable. As long as the prices remain above this threshold, many miners, who are often large investors or “whales,” can hold onto their Bitcoin (HODL), anticipating price increases. In early August, despite a sharp decline, Bitcoin didn’t dip below this zone, underscoring its significance in Bitcoin’s price movements.
Beyond this point, $25,000 represents another crucial accumulation point that traders will closely monitor should a widespread market downturn occur. This price level, at roughly $25,000, is the typical purchase price for long-term Bitcoin holders (LTHs), who have owned their BTC for more than 155 days.
This group primarily consists of individuals who are into whales (large investors) and believers in the network. In simpler terms, if the price drops below $50,000 and revisits the lows from August 2024, it could potentially trigger a further decline to around $40,000 or even lower.
Although bears could potentially dominate, there are also factors that encourage bulls to persist. For instance, one of the world’s leading asset managers, BlackRock, has incorporated Bitcoin into its Strategic Global Bond Fund as a protective measure against conventional assets. Their Bitcoin Spot ETF, IBIT, already manages billions of Bitcoins on behalf of their institutional clients.
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2024-08-28 02:46