Bitcoin Rebound, Crypto Market Recovery to Come? Analysis of August 13, 2024

While Bitcoin experienced a sharp drop on the first Monday of the month, it managed to rebound by more than 27% in the following days. Let’s analyze together the future prospects of the BTC price.

Bitcoin (BTC) Price Situation

After a significant decline due to fears of a recession in the United States, Bitcoin hit a low point at $49,200. It is important to note that this price level corresponded to an area of interest confirmed by a significant value zone. Since then, the leading cryptocurrency has regained strength, jumping nearly 28%. Bitcoin thus crossed the psychological threshold of $60,000 and reached a peak at $62,800. Unfortunately, this bullish momentum began to weaken from this last level, which now acts as resistance.

At the time of writing, the Bitcoin price is trading around $59,500. While the short-term structure seems to become bullish again, the medium-long term trend of the cryptocurrency remains uncertain. Indeed, although BTC has moved back above its annual and monthly VWAP, it remains below its 50 and 200-day moving averages, which recently formed a “death cross.” On the cryptocurrency’s dynamic side, it still appears weak despite a small rebound last week. This is reflected in the BTC price itself as well as in the oscillators. Naturally, all of these elements continue to sow doubt in the cryptocurrency market.

The current technical analysis has been carried out in collaboration with Elie FT, an investor and trader passionate about the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of active proprietary traders since 2017. You will find Lives, educational content, and mutual aid around the financial markets in a professional and friendly atmosphere.

Hypotheses for the Bitcoin (BTC) Price

• If the Bitcoin price remains above $54,500, one could anticipate reaching $62,800 or even $63,000. The next resistance to consider would then be around $65,600 or even $67,000. If the bullish movement continues, one could envision the movement continuing up to $70,000 or even $72,000. At this point, it would represent an increase of nearly 21%.

• If the Bitcoin price fails to stay above $54,500, one could consider a return around $53,400. The next support to consider, if the bearish movement continues, would be between $49,200. Lower, one can note the support between $48,300 and $47,000. At this point, it would represent a decrease of about 20%.

Conclusion

Although Bitcoin has experienced a recovery after a significant drop, its momentum remains fragile, and the medium-long term trend remains uncertain. Despite some positive signals, doubts persist about BTC’s ability to maintain sustained bullish movement, fueling uncertainty across the cryptocurrency market. Thus, it will be crucial to carefully observe the price’s reaction to various key levels to confirm or disprove 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 the cryptocurrency price can also quickly evolve based on other more fundamental factors.