With Bitcoin (BTC) hitting a near three-month high of $66,000 on Friday, technical analyst InspoCrypto suggests that the BTC futures market is at a critical juncture, with the potential for further short squeezes and the importance of maintaining support around the $64,000 level.

Divergence Despite BTC Uptrend

The analyst recently noted in his writing that the latest data shows that the BTC/USDT price chart hit a Friday high of $66,106, reflecting bullish sentiment as the cryptocurrency continues to climb. 

Over the past 24 hours, Bitcoin has seen a steady price increase, indicating optimism among investors. The True Strength Index (TSI) shows a slight divergence, indicating indecision in the market, but the upward trend remains intact.

Trading volume also plays a key role in understanding market dynamics, and current figures show a volume delta of $675.457 million, indicating a higher volume of buy orders than sell orders. This suggests buyers are currently dominating the market, supporting the bullish momentum.

Notably, there has been a significant amount of short liquidations, totaling $331.24 million. This indicates that as Bitcoin’s price rises, many short positions are forced to close, further driving the price upward. In contrast, long liquidations remain comparatively low, suggesting that those holding long positions are confident in the market’s direction.

InspoCrypto’s heatmap analysis of Hyblock Capital shows a concentration of short liquidation levels around the $63,000 to $64,000 area. This clustering indicates a likely short squeeze that could push prices even higher. 

However, the analyst shows that long liquidation levels appear more scattered, presenting a lower risk of cascading liquidations on the long side.

Analyst Predicts Further Bitcoin Price Surge

InspoCrypto further found that open interest (OI) in Bitcoin futures is rising, indicating increased interest in the market and a potential buildup for significant price movements. 

The heatmap shows strong concentrations of open interest around the $64,000 to $65,000 range, suggesting that any price movement beyond these levels could trigger volatility as traders adjust their positions.

The funding ratio currently stands at 763.8, indicating that the longs are paying off the shorts, adding to the bullish sentiment in the market. However, the analyst warns that a high funding ratio also signals a risk of long liquidation if the market unexpectedly shifts.

Looking ahead, InspoCrypto anticipates that the next 24 hours could see continued upward momentum as shorts are squeezed. However, the elevated funding rates could lead to long liquidations if the market is downturned. 

By the end of the week, InspoCrypto believes that if the current buying pressure continues, the Bitcoin price could reach prices around $68,000, inching closer to its all-time high of $73,700 in March this year.

At the time of writing, BTC has seen a slight retracement to its current trading price of $65,800. 

Featured image from DALL-E, chart from TradingView.com

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In less than nine months since the launch of its Bitcoin exchange-traded fund (ETF) following the approval of these investment vehicles by the US Securities and Exchange Commission (SEC), asset manager BlackRock has established itself as the world’s largest Bitcoin fund. 

A Tale Of Two Titans In Bitcoin And Ethereum Holdings

According to on-chain data from blockchain analysis platform Arkham, BlackRock has aggressively expanded its Bitcoin holdings through its ETF, known as IBIT over the last months. 

Despite recent market volatility that saw significant dips in Bitcoin’s price on August 5 and September 6, BlackRock continued to buy more Bitcoin, thereby supporting not only the token’s value but also its own asset base. 

As of September 25, BlackRock’s holdings have reached approximately 358,000 BTC, valued at around $22.76 billion, representing about 1.70% of Bitcoin’s total supply of 21 million.

In comparison, BlackRock’s Bitcoin holdings exceed those of Grayscale, another major crypto asset manager in the industry, by nearly 100,000 BTC. Grayscale currently holds approximately 258,671 BTC, valued at $16.45 billion, highlighting the significant gap that BlackRock has created in the BTC investment landscape.

While BlackRock has taken a commanding lead in Bitcoin, Grayscale maintains an advantage in Ethereum (ETH) holdings. Arkham’s data indicates that Grayscale possesses 2.104 million ETH, valued at roughly $5.45 billion based on the current trading price of $2,600 per ETH. In contrast, BlackRock’s Ethereum holdings amount to only 349,970 ETH, valued at approximately $910 million.

BlackRock Strengthens Bitcoin Stance

BlackRock’s support for Bitcoin extends beyond mere investment; it includes a strong endorsement of the technology underpinning the cryptocurrency. In a recent interview with Bloomberg, Robbie Mitchnick, head of digital assets at BlackRock, challenged the prevailing notion that Bitcoin should be categorized as a “risk-on” asset. 

During Tuesday’s interview, Mitchnick noted that while Bitcoin has recently shown a high correlation with US equities, this relationship may be misleading.

The head of digital assets at BlackRock noted that risk-on assets, such as stocks, commodities, and high-yield bonds, perform well during periods of market optimism and economic growth. Conversely, assets like gold are sought after in times of uncertainty, providing a safe haven for investors. 

Mitchnick drew parallels between Bitcoin and gold, saying “gold shows a lot of the same patterns”, referring to their temporary correlations with equities. He emphasized that the long-term correlation between BTC and traditional financial assets is close to zero.

One of BTC’s defining characteristics is its decentralized nature, Mitchnick added. No single country or government controls it, he said, which adds to its appeal as a global monetary alternative. 

Mitchnick went on to highlight Bitcoin’s scarcity, global reach and decentralized framework, describing it as a “non-sovereign asset”. He pointed out that BTC has no specific country risk and no counterparty risk, making it a compelling option for investors looking to diversify their portfolios.

At the time of writing, the largest cryptocurrency on the market has given back some of the gains made during Tuesday’s trading session, after hitting a one-month high of $64,700. Currently, BTC is trading at $63,220, down a slight 0.3% over the 24-hour period.

Featured image from DALL-E, chart from TradingView.com 

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Business intelligence firm MicroStrategy, led by Bitcoin (BTC) bull Michael Saylor, announced on Friday a successful $1.01 billion raise through the sale of convertible senior notes, a strategic move aimed at acquiring more BTC and redeeming higher-yielding securities.

MicroStrategy Invests Additional $458 Million In BTC

Of the funds raised, MicroStrategy allocated $458 million to purchase additional Bitcoin between September 13 and September 19, further bolstering its position as the cryptocurrency’s largest publicly traded corporate holder. As of September 19, the company reported holding approximately 252,220 Bitcoin, valued at around $15.8 billion. 

The convertible notes issued by MicroStrategy carry an interest rate of 0.625% and will mature in 2028. This marks the fourth time this year that the company has turned to the convertible note market to finance its Bitcoin acquisitions. 

In conjunction with the new issuance, MicroStrategy is redeeming $500 million of higher-interest 6.125% notes due in 2028, reflecting a strategic shift to lower borrowing costs while expanding its crypto portfolio.

Co-founder and Chairman Michael Saylor has played a pivotal role in shaping MicroStrategy’s identity as a cryptocurrency investment vehicle since the company first ventured into Bitcoin in 2020. 

Under his leadership, the firm has transformed from a traditional enterprise software maker into a de facto crypto hedge fund, demonstrating a bold commitment to digital assets amid market fluctuations.

MicroStrategy’s stock has also seen significant gains this year, more than doubling in value and outperforming Bitcoin’s approximately 50% increase over the same period. The latest acquisition follows MicroStrategy’s earlier purchase of 18,300 Bitcoin, valued at roughly $1.11 billion last week.

Bitcoin Price Analysis

Following what has been deemed a bullish catalyst, the broader cryptocurrency market has responded positively to the US Federal Reserve’s announcement on Wednesday of a 0.50% basis point rate cut. 

This decision contributed to the recovery over the past week after Bitcoin’s price retraced to as low as $52,640 on September 6. Bitcoin has managed to reclaim the $63,000 mark, aiming to consolidate above this critical level for the last 24 hours. 

Market analyst Ali Martinez points out that this price point coincides with Bitcoin’s 200-day simple moving average (SMA) on its BTC/USDT daily chart, which Martinez identifies as a pivotal threshold for the anticipated bull run in the latter part of the year.

Historically, failures to maintain this support level have led to significant corrections, as observed in 2020, 2018, and 2014. Martinez warns that a rejection at this level could signal trouble for Bitcoin’s future price trajectory.

To mitigate the risk of a sharp decline, key support floors have been spotted at $61,700 in the short term, with the $60,000 mark serving as an essential threshold to prevent further price drops. 

In addition, introducing new liquidity into the market could significantly boost the Bitcoin price, as the Fed’s decision may boost investor confidence in riskier assets such as BTC. 

A successful break and consolidation above $63,000 could set the stage for a potential challenge of the next resistance level at $64,000 in the coming days.

Featured image from DALL-E, chart from TradingView.com

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According to the Financial Times, the Swiss stock exchange SIX, the third largest in Europe, is exploring the possibility of launching a new Bitcoin and crypto exchange in the country, aiming to position itself to compete with exchanges like Binance, OKX and Coinbase. 

SIX Group Plans New Bitcoin Trading Venue

Bjørn Sibbern, Global Head of Exchanges at SIX Group, highlighted the potential for creating a platform to facilitate trading in spot cryptocurrencies and derivatives, noting that crypto has become a globally recognized asset class.

According to the report, the exchange aims to leverage its reputation and Switzerland’s progressive regulatory framework for digital assets to attract large institutional investors. 

Despite the growing interest, traditional financial firms have hesitated to establish crypto trading platforms due to concerns about regulatory clarity and reputational risks. While some major firms, including Deutsche Boerse, Nomura, and Standard Chartered, have launched their crypto exchanges, others remain cautious. 

For example, CBOE Global Markets recently closed its spot crypto venue, citing insufficient regulatory guidance. Similarly, CME Group had considered entering the Bitcoin trading space earlier this year but has since indicated that it has no immediate plans.

Switzerland’s Crypto-Friendly Environment

According to Sibbern, the recent approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission has sparked renewed interest from retail and institutional investors. 

Although the Bitcoin price has seen considerable volatility over the past two months – from a high of around $72,000 earlier this year to a current trading price of $59,800 – it is still up 40% year-to-date, underscoring the asset’s appeal to investors and confidence in its continued appreciation despite medium-term challenges.

The report further notes that Switzerland has emerged as one of Europe’s most “crypto-friendly jurisdictions,” thanks to its comprehensive laws governing the trading and custody of digital assets. 

Sibbern noted that SIX is actively exploring ways to expand its offerings in Europe, with cryptocurrency trading being a significant consideration. However, he emphasized that any new trading venue would cater exclusively to institutional investors, such as asset managers, rather than retail traders. Sibbern further told the news outlet:

We are looking at other ways for us to expand in Europe and as a part of that, we are also looking at [whether] crypto should be a part of it. We see the trend that more and more global banks and institutions are looking at crypto

SIX also operates a crypto derivatives platform named AsiaNext in a joint venture with Japan’s SBI Group. Sibbern remarked that they are evaluating whether to replicate this model in Europe. 

The Swiss exchange, owned by 120 banks, already runs a digital exchange that has listed several digital bonds since 2018, indicating its commitment to integrating digital assets into its operations.

Featured image from DALL-E, chart from TradingView.com 

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As the crypto community awaits the Federal Reserve’s (Fed) rate cut announcement on September 18, the stakes are high for Bitcoin (BTC) and the broader financial landscape. This upcoming decision marks the first central bank rate cut since the Fed slashed its key rate to near zero in March 2020 amid the COVID-19 pandemic. 

Will A 50bps Cut Spark A Bitcoin Bull Run?

According to CME Group’s FedWatch tool, markets are currently pricing in a 59% chance of a half-percentage-point rate cut and a 41% chance of a quarter-point cut. There’s an overwhelming expectation that by the end of 2024, the Fed could implement up to 100 basis points in cuts, with nearly 60% odds of 125 basis points. 

This suggests that investors anticipate at least one or two substantial rate cuts in the three remaining Fed meetings of the year, starting with this week’s announcement.

The potential effects of a 50 basis point cut remain hotly debated within the crypto industry. Market expert Crypto Rover argues that such a cut could reignite a bull run for Bitcoin, stating that the conditions could lead to “super bullish” prospects. 

Similarly, analyst Lark Davis recalls how Bitcoin previously surged following past rate cuts, predicting that if history repeats, the next 6-12 months could see significant price increases for the largest cryptocurrency on the market.

Optimism Vs Historical Caution In Crypto Market

In addition to optimism and bullish expectations, other analysts express caution. EmperorBTC predicts an initial market pump following the rate cut, driven by cheaper borrowing costs. 

However, the analyst warns of profit-taking by short-term holders leading to a subsequent market dump, suggesting a “sell the news” scenario that could leave many investors disillusioned before the market stabilizes and resumes growth.

On the other hand, technical analyst Justin Bennett offers a more cautionary historical perspective. He points to the market’s performance during the Fed’s rate cuts in 2007, when the Nasdaq 100 Index retraced significantly after the initial cuts, suggesting that the same pattern could emerge in 2023. 

Bennett’s analysis suggests that current market conditions may mirror previous downturns, calling into question the optimistic projections shared by some for the broader digital asset market.

In a similar vein, NewsBTC reported on Monday the analysis of crypto strategist Doctor Profit, in which he highlights a divided sentiment in the market regarding the rate cut, with equal chances of a 0.25% or 0.50% reduction. 

However, the analyst is leaning towards the larger cut, arguing that failure to take decisive action could lead to turmoil reminiscent of “Blood Monday” on August 5, when Bitcoin experienced a sharp decline to $48,900.

Despite the divided sentiment in the market, Bitcoin has jumped from the $57,000 mark traded on Monday to a current price of $61,000, recording a surge of nearly 6% in a matter of hours in anticipation of tomorrow’s announcements.

Featured image from DALL-E, chart from TradingView.com 

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The Bitcoin market has seen some consolidation since Monday, maintaining a price above the $56,000 mark after a brief drop from $65,000 to around $52,600 last Friday. 

However, one analyst suggests that the bearish sentiment may still be ongoing, with expectations of a potential revisit to lower levels before a significant upward movement.

BTC’s Future Price Action In Focus

Crypto analysts known as “VirtualBacon” on X (formerly Twitter) have raised concerns about an impending “huge Bitcoin shakeout.” In the coming 2-3 weeks, the analyst explains that Bitcoin could experience one last decline before initiating a bull run. 

“Panic is everywhere—people are calling for lows in the $40,000s, claiming the bull run is over,” VirtualBacon noted. Yet, he argues that whether Bitcoin dips to $45,000, $48,000, or even $43,000, a bull run remains on the horizon. This period often sees a shakeout of many holders right before significant rallies.

While the current charts indicate lower highs and lower lows, suggesting a downtrend, VirtualBacon believes that a prolonged bear market appears unlikely.

The primary driver of this sentiment is the anticipated liquidity injection and interest rate cuts by the Federal Reserve, conditions that typically favor a bull run, particularly looking ahead to 2025.

Another crucial aspect of VirtualBacon’s analysis lies in Bitcoin’s key support level—the 100-week Exponential Moving Average (EMA). This level has historically marked the end of bear markets, with Bitcoin bouncing off similar levels in 2015 and 2019. 

Currently, this support level sits around $45,000, with various technical indicators, including Fibonacci retracements and high-volume nodes, suggesting strong support in the $43,000 to $49,000 range.

Even if Bitcoin does dip into this range, the analyst believes it would likely be a temporary “wick” rather than a sustained drop. VirtualBacon also highlights that some traders speculate about around $50,000 to $51,000.

However, this could be risky; a touch at these levels might trigger a cascading liquidation event that could push prices to $44,000.

How Upcoming Fed Decisions May Fuel Bitcoin Bullish Momentum

Historically, September has been a weaker month for Bitcoin. However, the upcoming months—October, November, and December—tend to show more bullish trends. VirtualBacon notes that over the last decade, eight out of ten Octobers have ended positively for Bitcoin, with November also historically strong.

The backdrop of this market analysis coincides with the Federal Reserve’s upcoming Federal Open Market Committee (FOMC) meeting, where the analyst predicts a 70% chance of a 25 basis point rate cut and a 30% chance of a double cut. 

VirtualBacon notes that this could initiate a 12-month liquidity injection cycle that typically boosts risk assets like BTC and propels the leading cryptocurrency above current all-time high levels of $73,700.

Despite the prevailing fear in the market, as the Fear and Greed Index indicates, the analyst argues that this fear may be irrational, especially with the impending monetary policy shifts. As the Fed begins to cut rates, sentiment is expected to shift rapidly, potentially leading to renewed interest and investment in Bitcoin.

BTC trades at $56,930 when writing, recording a slightly 0.7% gain in the last 24 hours.

Featured image from DALL-E, chart from TradingView.com 

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On Friday, the cryptocurrency market’s Fear and Greed Index plummeted to “extreme fear,” reflecting growing anxiety among investors as the Bitcoin price dipped to a weekly low of $53,700. 

This downturn marks a continuation of a broader sell-off that has plagued the market, particularly since Bitcoin struggled to maintain momentum above the critical $60,000 threshold.

Bitcoin Targets $53,000 Amid Bearish Sentiment

The steep decline in Bitcoin’s value can be traced back to August’s significant crash, attributed to challenging macroeconomic conditions that resulted in increased liquidity exiting risk assets, including cryptocurrencies. 

Furthermore, September has historically been a bearish month for Bitcoin, with an average negative return of 6%. As of now, just six days into the month, Bitcoin has already recorded an 8% decline, a trend that market expert Benjamin Cowen suggests could align with typical September behavior if the month concludes at this rate.

However, further price retracements could occur if key support levels fail to hold. Analyst Justin Bennett pointed out that Bitcoin appears to be heading towards a target of $53,000 after a failed attempt to retest its all-time high of $69,000, which was achieved at the end of August. 

Bennett indicated that while the situation remains fluid, there is potential for a brief relief rally in the $52,000 to $53,000 range before a deeper correction could lead the price down to $48,000.

Another analyst, Michael van de Poppe, has also weighed in on the current market dynamics, stating that the market may have overreached by taking liquidity from above. 

Van de Poppe anticipates that Bitcoin will likely test the $53,000 level before any upward movement occurs. For Bitcoin to regain its footing, van de Poppe emphasizes the necessity of reclaiming the $56,000 mark following the recent dip.

Key Factors That Could Catalyze BTC’s Price Recovery

Despite this bearish sentiment dominating the market, BTC investor Lark Davis remains optimistic about the future, suggesting that the next six months could be pivotal for Bitcoin and the broader market, regardless of recent price corrections.

One of Davis’ key points is the upcoming fourth quarter, which has historically been a bullish period for BTC, especially in Halving years. In addition, he highlights the rising M2 money supply, which could lead to more capital being injected into the market, further fueling a potential rally.

Davis also discusses the possibility of rate cuts by the US Federal Reserve, which analysts suggest could act as a significant catalyst for BTC’s price. Should the Fed implement cuts of 25 basis points, it could create a more favorable environment for the entire crypto market.

Another critical factor Davis points to is the upcoming US election, which is just 60 days away. As reported by NewsBTC, a potential return of former President Donald Trump could positively impact the crypto market. 

Trump has indicated plans to put BTC at the forefront of his economic agenda, including loosening regulations and fostering a more supportive environment for cryptocurrencies. This shift could instill greater confidence among investors and potentially boost BTC prices significantly.

However, it remains to be seen what the next few days will bring for the Bitcoin price as the bearish sentiment in the market is palpable, but with October holding potential gains as has historically happened in past years. 

When writing, the largest cryptocurrency on the market was trading at $54,100. 

Featured image from DALL-E, chart from TradingView.com

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Amid growing global economic uncertainties looming over financial markets, including crypto, Warren Buffett has made a significant move by selling an additional $982 million worth of Bank of America stock. 

Buffett’s Sale Of Bank Of America Shares

According to Bloomberg, this sale marks the continuation of his conglomerate’s reduction of investments in the second-largest US bank. Berkshire Hathaway has trimmed its stake by nearly 13% through sales since mid-July, generating $5.4 billion in proceeds. 

These sales mark Buffett’s most substantial retreat from an investment that has historically signaled an endorsement of Bank of America’s leadership under CEO Brian Moynihan, a figure the 93-year-old investing figure has praised in public.

Adding to the narrative, technical analyst Jamil has underscored the significance of Buffett’s latest sales by questioning the rationale behind his decision to dump nearly $1 billion worth of Bank of America stock. 

Citing previous breaches and the near completion of “backtesting” on the Bank of America stock chart, Jamil hints at an impending market shift, suggesting the potential for a significant downturn that could drive the bank’s share price toward the $14 mark.

Crypto Market Rattles

While these developments may not directly pertain to the crypto market, they raise pertinent questions about the broader financial landscape. They could signal preparedness from large investors for a potential global economic downturn that could reverberate across various sectors, including the digital asset industry. 

Recent events, such as the turbulence in the Japanese stock market on August 5, resulted in a notable over 20% correction in leading cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH, further showcasing the fragility of the current financial climate.

Interestingly, Buffett’s actions come in the wake of the Federal Reserve’s (Fed) recent dovish stance, with Chair Jerome Powell hinting at the likelihood of further rate cuts in September amidst a cooling labor market. 

While Bitcoin initially welcomed such a stance, which surged to a one-month high of $65,000 last weekend, the broader implications of Buffett’s strategic moves and the Fed’s monetary policy signals point to a potentially turbulent economic landscape in the months ahead, with no clear certainties. 

This is further evidenced by the recent 6% price correction experienced by Bitcoin in the last 24 hours, which is currently trading at $58,500 and has been unable to consolidate above the key $60,000 level for over a week. 

On the other hand, Ethereum has seen a 4% decline in the 24-hour time frame, falling back to the $2,480 level on Wednesday, along with the broader market correction led by BTC. 

It remains to be seen what signs the Fed gives in the expected September meetings, as well as the industry’s reactions and experts’ further analysis of these developments to gauge the crypto market’s next movements.  

Featured image from DALL-E, chart from TradingView.com

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After experiencing a significant 25% pullback earlier this month, plunging to the $49,000 level, the king of cryptocurrencies, Bitcoin (BTC), has managed to consolidate above the crucial $60,000 support for the last 24 hours.

However, Bitcoin’s journey toward further price appreciation has been without obstacles. The digital asset has been unable to surpass higher resistance levels, which technical analysts deem essential for a retest of the all-time high levels reached in March.

What On-Chain Metrics Reveal

According to a recent analysis shared on social media platform X (formerly Twitter), technical analyst Inspo Crypto has highlighted the cautious sentiment among options traders. While they remain bullish, they continue to hedge against potential downside risks, suggesting an expectation of a potential market shakeout or negative news.

The analyst also contends that the selling pressure on the upside has been robust. Wednesday’s price push-up primarily triggered sell orders, leading to the liquidation of high-leverage long positions. 

Delving deeper into the market data, the options market reflects a mixed outlook with slight bullish tendencies, but the 25-Delta Skew indicates uncertainty, particularly with upcoming economic events influencing trader caution.

In the futures market, the data shows short-term bullish momentum but with increased volatility. The rising open interest suggests more market participation, yet the liquidation heatmap highlights the risks of sudden price swings.

Bitcoin Breakout To $63,000 Or Consolidation At $60,000? 

Turning to the spot market and technical analysis, the data paints a picture of bullish momentum, but the cryptocurrency faces strong resistance at the $61,300 to $61,500 levels. 

The volume, however, appears insufficient to facilitate a significant breakout, and the order book data reveals substantial sell-side pressure at these levels.

Inspo Crypto further found that the average trader sentiment is neutral to slightly bullish, with a rating of 5.5 out of 10. Traders are cautiously optimistic, but there are clear signs of uncertainty and potential volatility.

The price forecast for the next 24 hours suggests that Bitcoin may continue attempting to break the $61,300 to $61,500 resistance level. 

However, a genuine breakout seems unlikely without a substantial increase in trading volume. If the resistance holds, a pullback toward the $60,000 or even the $59,500 level is possible.

For the rest of the week, if Bitcoin manages to break through the $61,500 level with increasing volume, a move toward the $62,500 to $63,000 range could follow. Otherwise, consolidation between $59,500 and $61,000 is likely, especially if market volume remains low and selling pressure persists.

Late Wednesday, BTC climbed above $61,7000 for the first time in nearly two weeks but has since fallen back to the $60,000 level. Still, the Bitcoin price is up 1.8% over the past 24 hours. 

Featured image from DALL-E, chart from TradingView.com

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The world’s largest cryptocurrency, Bitcoin (BTC), has struggled to maintain a foothold above the critical $60,000 price level in recent trading sessions, as the digital asset finds itself caught in a tug-of-war between bullish and bearish forces.

After recovering from a dip below $49,000 earlier this month, Bitcoin has been vacillating around the $60,000 mark, unable to consolidate above this key psychological and technical threshold. 

This price level has emerged as a battlefield between the bulls and bears, with the outcome poised to have significant implications for Bitcoin’s near-term trajectory.

Bitcoin Faces Decisive Test At $60,000

According to market analyst Mark Cullen, Bitcoin’s ability to reclaim and hold above $60,000 by the end of the day could pave the way for a move higher towards the mid-to-high $60,000 range. 

However, should Bitcoin fail to decisively push through the $59,500 level, Cullen warns that the technical outlook could turn more bearish, with the potential for a sweep of the August 7th low.

Further complicating the continuation of the price recovery witnessed the past week after the August 5 market crash, is the presence of a sizable 1,000 BTC sell order currently protecting the $60,500 level, as noted by crypto analyst InspoCrypto. 

According to the analyst, a failed retest of this resistance zone could potentially catalyze the formation of a bearish double top pattern, which would be a concerning development for the bulls in the near term price action. InspoCrypto said:

The $60,500 level is currently protected by a 1,000 BTC sell order. A failed retest of Bitcoin at $60,500 could potentially complicate the situation. Technical analysts might identify a double top formation in such a scenario.

Moreover, the latest updates on the options data do not paint an entirely optimistic picture for Bitcoin in the short term, according to InspoCrypto, who emphasized the need to closely monitor the situation.

Worst-Case Scenario For BTC

According to crypto analyst Daan Crypto Trades, the fact that Bitcoin is currently trading above the $59,000 mark is a positive sign, as it represents a return to the asset’s Daily 200-Exponential Moving Average (EMA). 

However, Daan Crypto Trades noted that the real test for the bulls will come at the $63,000 level, which corresponds with the cryptocurrency’s local highs. “It’s an important level to break for the bulls to get the party started,” the analyst stated. Should Bitcoin fail to decisively surpass this resistance, the bears could regain control, with the $56,500 level serving as a potential support zone.

Fellow technical analyst EmperorBTC echoed a similar sentiment, highlighting the significance of Bitcoin’s ability to reclaim its “macro range” and the resistance at the $62,200 level. 

The analyst advised against opening fresh long positions at current levels, instead suggesting that traders should look to “bid on pullbacks near the weekly VWAP (Volume-Weighted Average Price) at $58,800.”

In a somewhat more cautious tone, EmperorBTC also acknowledged the possibility of a worst-case scenario, wherein Bitcoin could potentially retrace to the $52,000 level. However, the analyst emphasized that this would be a “gift to buy and hold” in the lead-up to September, hinting at the possibility of a more favorable market environment in the coming months.

Featured image from DALL-E, chart from TradingView.com

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