As a seasoned analyst with over two decades of market experience under my belt, I’ve seen my fair share of market dips and recoveries. This latest Bitcoin dip seems to be following a familiar pattern – a sideways dance that often precedes a significant move.
On Wednesday morning, Bitcoin (BTC) experienced another drop, lowering its price to approximately $55,700. Should we start questioning the bullish outlook for Bitcoin now, or is this merely another chance to invest wisely?
Bounce, or more downside?
Currently, we’re experiencing 175 days of continuous, laborious price movement for Bitcoin ($BTC), with a trend that appears to be sideways and slightly downwards. The most recent drop has pushed the price beneath a touch below the crucial horizontal resistance level at $58,000, even dipping briefly below $56,000 – an area that could potentially provide support in the future.
As a researcher, I’m pondering over the potential market movement in the near future. Specifically, I’m wondering if there could be a price rebound from my current position, or if the downward trend will continue, potentially reaching the robust support level at $51,000 again.
Why did Bitcoin dip again?
When significant losses of over $1 trillion occur on the U.S. stock market within a day, as seen with the S&P 500, it’s reasonable to expect that these events will ripple through to Bitcoin and other cryptocurrencies.
A notable seven American companies experienced significant losses across their portfolios. Among them, NVIDIA (NVDA) endured the most substantial decline – a decrease of approximately 9.53% for the day. The technology sector on Nasdaq took an especially tough blow, experiencing a drop exceeding 3%, which was steeper than that of the S&P.
Considering the downward trend in the U.S. stock market, it appears that Bitcoin has fared somewhat better. Initially, it experienced a dip of approximately 3%, but subsequently, it has managed to recoup some of those losses.
Bullish pattern emerging
Examining the short-term Bitcoin price, it appears that the price has dropped beneath the significant horizontal support at around $58,000, potentially turning this level into a new resistance. However, this observation is mainly speculative based on the 4-hour chart. A daily candle body closing below (preferably three) would offer stronger evidence that this level now serves as resistance.
As a crypto investor here, I’ve noticed a particular chart pattern that seems to have the potential to change the game. It appears to be an inverted head and shoulders pattern, clear as day. The right shoulder might still dip a tad more, but the pattern is unmistakable.
As a researcher, I am curious to know if anyone believes that Bitcoin is about to reverse its direction and head northwards once more. However, the factors that caused the stock market’s dip still need to be clarified, and it will be quite fascinating to observe whether the S&P 500 has more room to decline when it reopens on Wednesday.
Read More
Sorry. No data so far.
2024-09-04 13:09