As a seasoned crypto investor with scars from past market cycles, I find myself standing at the precipice of uncertainty once again.
As another week winds down, Bitcoin (BTC) remains steadfast at its key support level of around $58,000. There’s a palpable sense of apprehension in the market right now – will Bitcoin be able to maintain its strong standing through both the monthly and weekly closing periods?
It’s always darkest before the dawn
The wait continues, but for seasoned Bitcoin investors from past market surges, this might ring a bell: With the leading crypto, it often feels like the darkest hour is just before the day breaks. It’s possible that many have sold in moments when recovery seemed unattainable.
For over five months now, we’ve been experiencing a continuous drop followed by slight dips. If the weekly and monthly closing prices don’t show an increase, could this signal a more severe drop in value coming up?
Only the market knows what will happen next. For those that have been holding all this way, the decision needs to be made to either sell, and potentially take a loss, or to hold firm in the knowledge that Bitcoin is vastly superior to fiat currencies, and that as governments continue to debase these currencies, Bitcoin and other hard assets should rise against them.
$BTC in upward sloping channel
Over a brief period, the Bitcoin price has been moving along an ascending channel since early August. At present, the price is hovering near the channel’s lower boundary. It may either rebound upward or drop below the channel.
So far, several wicks (candlestick’s lower shadows) have been rapidly acquired near the channel’s bottom. A few of them have even touched the significant support at $58,000, which coincidentally aligns with the 0.786 Fibonacci level for this particular move – an ideal spot to anticipate a rebound.
Currently, Bitcoin needs to surpass approximately $59,500, a key Fibonacci level of 0.618, for it to encourage bulls to drive the price further up to around $61,500, which is another significant Fibonacci level at 0.382.
Wider picture looks positive
On a day-to-day basis, things seem optimistic. The price continues to trend within the bull flag or expanding triangle, and the significant level of $58,000 is maintaining well as strong support.
In simpler terms, the Daily Stochastic RSI (Relative Strength Index) is nearing its lowest point, but when it starts to increase and surpasses the 20 level, this, along with the Weekly Stochastic RSI, could provide the required push for Bitcoin’s price to climb back up towards the peak of its upward trend.
Beware!
If the BTC price drops below the current upward-trending channel and confirms a move lower, it might also breach the significant $58,000 horizontal support level. This could lead to a potential false signal on the weekly Stochastic RSI, and there’s a chance that the BTC price could decline further, reaching the next major horizontal support at $51,000. We are now at a crucial point in time.
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2024-08-30 12:02