Originally published on: August 06, 2024
August has been a challenging month for Bitcoin, with the digital currency experiencing a more than 14% decline so far. Negative macroeconomic factors like an interest rate hike in Japan, poor US employment data, and geopolitical tensions in the Middle East have contributed to this downward trend.
Recent data from Cointelegraph Markets Pro and TradingView highlights that Bitcoin hit a seven-month low at $49,577 on Bitstamp after losing crucial support levels. The drop below $50,000 on August 5 led to significant liquidations and a staggering $500 billion wiped out from the crypto market.
Despite this, Bitcoin has shown resilience by bouncing back to reclaim the $56,000 mark, with a 2.5% increase over the last 24 hours. This recovery has rekindled optimism among Bitcoin analysts who foresee a potential return to higher price levels.
According to analyst Jellewrote, Bitcoin needs to surpass $57,000 to signal a positive trend continuation. Fellow analysts have also pointed out that the relative strength index (RSI) indicates oversold conditions, suggesting a possible shift in momentum towards a recovery.
Analysts are confident in Bitcoin’s upward potential, with Moustache highlighting bullish signals on the daily chart and a buying opportunity emerging. Kaiko’s recent analysis also supports this view, noting a surge in buying volume on US-based crypto exchanges during the recent sell-off.
The latest flash crash below $50,000 has drawn comparisons to previous market cycles, with veteran traders like Peter Brandt and Titan of Crypto sharing optimistic outlooks for Bitcoin’s potential upside. Brandt believes we could see a new bull cycle high in the coming weeks, while Titan of Crypto predicts a rally towards $90,000 based on chart patterns.
As Bitcoin traders regain confidence, the market outlook appears to be shifting towards a more positive trajectory. Stay informed with critical insights and investment opportunities by subscribing to the Markets Outlook newsletter today. Remember, all investment decisions carry risks, so conduct thorough research before making any financial moves.