Bitcoin Plunges Below $50,000! End of the Cullish Cycle? Analysis from August 6, 2024

As Bitcoin reached $70,000 last week, the cryptocurrency recorded a drop of more than 26% in one week. Let’s analyze together the future prospects of the BTC price.

Bitcoin (BTC) Price Situation

After rejecting $70,000, Bitcoin underwent selling pressure, gradually bringing its price toward $62,500. Unfortunately, this level could not be maintained. Indeed, Bitcoin sparked growing selling interest, which led its price to $49,250 in the following days. This drop can be explained by poor economic results worldwide and significant geopolitical tensions, particularly related to Iran. Nevertheless, it is at this last price level that BTC benefited from buying interest, which seems to be maintained until today.

At the time of writing this text, the Bitcoin price is trading around $56,000. As encouraging as this may seem, continuous buyer support is needed to counter BTC’s short-term bearish trend. Regarding the medium-long-term trend of the cryptocurrency, although it remains theoretically bullish, it is not surprising that uncertainty reigns over its future. This is explained by the fact that Bitcoin is making lower lows and is below its annual VWAP and its 50- and 200-day moving averages, seemingly ready to form a “death cross.” On the cryptocurrency’s dynamics side, it is not surprising that it has been revised downward. This is reflected by the BTC price itself and the downward-revised oscillators. Naturally, all these elements leave room for uncertainty in the cryptocurrency market.

The current technical analysis was carried out in collaboration with Elie FT, a passionate investor and trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of independent traders active since 2017. There, you will find live sessions, educational content, and mutual aid around financial markets in a professional and friendly atmosphere.

Hypotheses for the Bitcoin (BTC) Price

• If Bitcoin’s price remains above $53,400, we could anticipate reaching $58,000 or even $59,000. The next resistance to consider would then be around $60,300 or even $62,300. If the upward movement continues, we could envision a continuation of the movement up to $65,000. At this point, it would represent a rise of nearly 18%.

• If Bitcoin’s price fails to stay above $53,400, we could envision a return around $49,300. The next support to consider, if the downward movement continues, would be between $48,300 and $46,700. Further down, we can note the $45,500 support. At this point, it would represent a drop of about 17%.

Conclusion

Despite a rebound attempt, Bitcoin remained under pressure due to economic and geopolitical factors. The downward trend persists in the short term, and uncertainty dominates the future of the crypto market, highlighted by worrying technical signals. Therefore, it will be crucial to closely observe the price reaction at various key levels to confirm or refute the current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve quickly based on more fundamental factors.