Originally published on: August 06, 2024
As Bitcoin’s price experiences significant volatility, experts warn of a possible drop to match previous lows of $49,500. Despite a recent bounce, concerns linger over the direction BTC/USD could take in the coming days.
Renowned trader CrypNuevo highlighted the risk posed by large daily candle wicks, indicating a potential return to fill the gap left at the $49,500 mark. According to historical data, such wicks often lead to price corrections within days.
A closer look at the price chart reveals that Bitcoin’s recent rebound occurred at a critical level, fueling speculation about a potential bottom formation. Similarly, trading firm QCP Capital noted a massive leverage flush as a bullish signal for the market.
With the Federal Reserve’s policy decisions looming, uncertainty persists in the financial markets, adding to the ongoing price volatility. While some remain optimistic about Bitcoin’s recovery, investors are advised to exercise caution and conduct thorough research before making any investment decisions.
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