Bitcoin Struggles To Regain Interest: Technical Analysis Of September 3, 2024

After an attempt at a bullish recovery, Bitcoin underwent a 12% correction. Let’s examine together the future prospects of BTC’s price.

Bitcoin (BTC) Price Situation

After a significant drop due to recession fears in the United States, Bitcoin reached a low of $49,200. At this level, the cryptocurrency rebounded by nearly 28%, reaching a peak of $62,800. Bitcoin then entered a consolidation phase, trading in a rough range between $56,000 and $62,800, before marking a new high at $65,000. Unfortunately, the demand was not strong enough to maintain the price at this level.

At the time of writing this text, the Bitcoin price is trading around $59,100. The last Bitcoin impulse was thus absorbed. However, after reaching the $57,700 support, the cryptocurrency demonstrated some buying interest, confirming the interest at this support level. Thus, BTC’s short-term structure seems to remain bullish.However, as promising as this may seem, the medium to long-term trend of the cryptocurrency remains uncertain. Indeed, Bitcoin has fallen below its 50 and 200-day moving averages, as well as its POC (Point of Control) considered since its last low around $49,000. Nevertheless, one can be reassured by the fact that the crypto seems to maintain its upward momentum, as evidenced by its oscillators.

The current technical analysis was carried out in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Now a trainer at Family Trading, a community of thousands of proprietary traders active since 2017. There, you will find Lives, educational content, and mutual support around financial markets in a professional and friendly atmosphere.

Focus on Derivatives (BTCUSDT)

The latest drop in Bitcoin was accompanied by a decrease in the open interest of BTC/USDT perpetual contracts. Given the gradual decline in CVD and funding rates at the same time, we can deduce that selling interest was predominant among speculators. Liquidations show significant long positions, suggesting a capitulation of buyers following this decline. Currently, there is a stagnation in open interest, indicating a balance between buyers and sellers. However, it is worth noting that CVD and funding rates seem to be slightly picking up, which could indicate that buyers are regaining control.

The liquidation heatmap of the last three months shows that BTC/USDT has recently come into contact with the liquidation zone located below the $57,700 support. Given Bitcoin’s reaction, it appears that buying interest has emerged. Although this is positive, it should be noted that this liquidation zone extends to $55,800. Below this level, one can note the $54,500 zone. Above the current price, one can observe the zone just below $66,000, and just above, the one slightly above $67,000. That said, the most marked zones are above $70,000. If the market approaches these levels, we could witness a massive triggering of orders, potentially increasing the cryptocurrency’s volatility. These zones, therefore, represent major points of interest for investors.

Bitcoin (BTC) Price Predictions

• If Bitcoin’s price remains above $57,700, one could anticipate a reach of $61,200. The next resistance to consider would then be around $62,700 or higher, around $65,000. If the bullish movement continues, one could envision a continuation up to $66,000 and beyond. At this stage, it would represent a rise of about 12%.

• If Bitcoin’s price fails to stay above $57,700, one could envision a return around $56,200. The next support to consider, if the bearish movement continues, would be between $55,000 and $54,000. Lower, one can note the $49,200 support. At this stage, it would represent a decline of about 17%.

Conclusion

Although Bitcoin shows signs of short-term recovery, its medium and long-term evolution remains uncertain. Despite recent consolidation and indicators suggesting positive momentum, the ability to maintain this trend remains fragile. It will, therefore, be essential to closely monitor the price reaction at key levels to validate or revise the current forecasts. It is also important to remain vigilant against potential market “fake outs” and “squeezes” in each scenario. Finally, let’s remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also evolve rapidly based on other more fundamental factors.