As a seasoned crypto investor with over a decade of experience navigating the volatile cryptocurrency market, I can confidently say that Bitcoin’s recent bullish retracement has been nothing short of impressive. However, approaching the critical resistance zone defined by the 100 and 200-day moving averages is akin to standing at the precipice of Mount Everest – it’s an essential challenge that must be faced with caution and strategy.
Over the last month, Bitcoin has experienced a strong upward correction, managing to break through multiple significant resistance points.
Nevertheless, the cost is fast approaching a crucial resistance point marked by the 100 and 200-day moving averages. How Bitcoin behaves in this region will significantly influence its long-term direction.
Bitcoin Price Analysis: Technicals
By Shayan
The Daily Chart
Looking closely at Bitcoin’s daily price chart shows an uptick in buying interest, with the price bouncing back after a bullish correction, successfully surpassing several important resistance points. However, following a strong 32% surge, BTC is now nearing a critical and substantial resistance area, marked by the meeting point of the 100-day and 200-day moving averages.
These MAs align at the $63.5K threshold, creating a formidable resistance area.
As the 100-day Moving Average (MA) approaches dropping beneath the 200-day MA, recent market trends hint at a possibility of Bitcoin surpassing this significant barrier, potentially reversing the expected MA crossover.
Nonetheless, the convergence of these two lines at $63.5K underscores the significance of this resistance, with upcoming price action likely determining Bitcoin’s overall trajectory. Should a rejection occur, sellers may target the notable $60K support region as their next objective.
The 4-Hour Chart
On the 4-hour timeframe, Bitcoin’s price movements show a bullish pattern, marked by successively rising peaks and troughs, which suggest robust demand from buyers within the market.
Bitcoin has regained important resistance points at around $56,000 and $60,000. Yet, it’s worth noting that the price chart shows an ascending wedge formation, which might hint at a potential bearish trend if the pattern breaks towards the downside.
As a researcher studying Bitcoin’s price movements, I’ve noticed that the cryptocurrency has encountered a notable resistance at around $63.5K. This appears to have slowed down its bullish momentum somewhat. Interestingly, this level aligns with the upper limit of the wedge pattern, making it a significant hurdle for further growth. If Bitcoin manages to break through this crucial threshold, it might aim for the potential fair value gap between $68K and $69K. However, beware that increased selling pressure could resurface in this range.
If a rejection happens, it’s probable that the lower boundary of the wedge, approximately $62K, will serve as the next defensive line for buyers.
On-chain Analysis
By Shayan
Examining the performance indicators of Bitcoin’s futures market provides useful additional information alongside conventional price examination. The graph emphasizes the Taker Buy Sell Ratio, a crucial factor that compares the intensity of buying and selling actions when transactions are processed.
As a researcher, I’ve noticed a substantial decrease in the ratio we’ve been tracking, signifying robust selling pressure in the market. Yet, it seems that this trend has reversed somewhat, with the metric showing a small increase recently. This could imply that investors are actively working to push Bitcoin’s price beyond the crucial $63K resistance level. If this positive trend persists, we might be looking at an extension of the current retracement phase in the short term, which could potentially result in a breakout above both the 100 and 200-day moving averages. Such a development could pave the way for a surge toward the significant $70K resistance zone.
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2024-08-26 16:03