Bitcoin Surpasses $63,000: Is a Crypto Market Recovery Underway? Analysis from August 27, 2024

After bouncing back, Bitcoin went through a consolidation phase before recently surpassing its previous peak. Let’s analyze together the future prospects of BTC’s price.

Bitcoin (BTC) Price Situation

After significantly falling due to fears of a recession in the US, Bitcoin reached a low of $49,200. At this level, the cryptocurrency bounced back by nearly 28%, reaching a peak of $62,800. However, this bullish momentum began to fade from that level. BTC’s price then started a consolidation phase, fluctuating roughly between $56,000 and $62,800. Recently, Bitcoin broke out of this range upwards, setting a new peak at $65,000.

At the time of writing, the Bitcoin price is trading around $62,800. Buyer interest in the cryptocurrency seems to lack support. Although the short-term structure appears to be on the rise, the medium-to-long-term trend of the cryptocurrency remains uncertain. Indeed, although BTC has bounced above its 50 and 200-day moving averages, they remain crossed downwards, suggesting that it could be just a breather. Nevertheless, we can be reassured by the fact that Bitcoin’s price has firmly re-entered its control point, located just below the $60,400 support. On the cryptocurrency’s momentum side, it is not surprising that it has slightly rebounded. This is reflected in BTC’s price itself as well as in its oscillators.

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

Focus on Derivatives (BTCUSDT)

The latest fluctuations in Bitcoin have been accompanied by an increase in open interest. This increase occurred while the CVD slightly picked up, indicating a slight outperformance of buyer strength over sellers. This suggests that speculators’ view on Bitcoin’s future price has recently become optimistic. This hypothesis is reinforced by funding rates, which have turned positive. On the liquidation side, they remain insignificant, demonstrating a relatively stable market phase.

The liquidation heatmap for the last six months shows that BTC/USDT has two significant liquidation zones, located above $70,000 and $72,000. Below the current price, a small liquidation zone is observed around $60,500. Lower down, subtle zones are noted at the levels of $57,200, $56,150, and $54,500. If the market approaches these levels, we could see a massive trigger of orders, potentially increasing the cryptocurrency’s volatility. These zones are therefore major points of interest for investors.

Hypotheses for Bitcoin (BTC) Price

• If Bitcoin’s price stays above $59,500, we could anticipate reaching $65,600. The next resistance to consider would then be around $67,000. If the upward movement continues, we could envision a continuation to $70,000 or even $72,000. At this stage, this would represent a rise of about 15%.

• If Bitcoin’s price fails to stay above $59,500, we could envision a return around $56,200. The next support to consider, if the downward movement continues, would be between $55,000 or $54,500. Lower down, the support at $49,200 can be noted. At this stage, this would represent a drop of about 21%.

Conclusion

Despite notable support after a marked initial rebound, Bitcoin’s trend remains uncertain. While the recent recovery is encouraging, signs of fragility persist, suggesting that caution is warranted for the future. Thus, it will be crucial to closely observe the price’s reaction at various key levels to confirm or invalidate current hypotheses. It is also important to remain vigilant against potential “fake outs” and market “squeezes” in each scenario. Finally, let us remember that these analyses are based solely on technical criteria and that cryptocurrency prices can also quickly change based on other more fundamental factors.