Originally published on: August 02, 2024
Bitcoin traders were taken by surprise as BTC plummeted by $2,300 shortly after the Wall Street opening on Aug. 2, dipping to $62,368 on Coinbase. The price of Bitcoin has remained relatively steady, with a 1% increase over the past 24 hours to reach $63,252.
This sudden sell-off has resulted in Bitcoin losing critical support levels, such as the 50-day exponential moving average (EMA) at $64,300 and the 100-day EMA at $63,670.
Renowned Bitcoin analyst AlphaBTC noted on an Aug. 2 post on X that they anticipated the “Bitcoin sweep” and a positive reclaim of the range. This movement came after Bitcoin’s price action since July 30, when it dropped from highs of $66,996 to a swing low just below $63,000 on Aug. 2.
AlphaBTC emphasized the importance of maintaining the range low at $63,300 to increase the likelihood of retesting the range high at $67,000.
Meanwhile, other analysts like Crypto Rover warned of a potential dire situation if Bitcoin were to lose the $63,000 support level. AlphaBTC discussed two potential scenarios in a previous X post, with a bullish outlook pointing towards a V-shaped recovery towards $66,800 if Bitcoin confirms a triple bottom structure around the 38.2 Fib level at $63,450.
However, a bearish case was also presented involving a breakdown of the support at $63,000, leading to a swift drop in price to $61,000. AlphaBTC has set the short-term bearish target for Bitcoin at $61,000 based on the current price action.
Despite differing opinions among analysts, there is a consensus that Bitcoin’s price may see further corrections, with downward targets ranging from $58,000 to $55,000. Emperor Keo X highlighted the technically bearish condition of Bitcoin, suggesting a potential decline to $58,000 or below.
To avoid further losses, Bitcoin bulls must maintain the price above the ascending trendline on the daily chart, with the 200-day EMA at $59,558 serving as a crucial support level.
Looking ahead, traders are closely monitoring Bitcoin’s price action around the $65,000 level, which is considered significant for buyers. The appearance of a long lower wick on the Aug. 1 candlestick indicated the importance of this level, with the 200-day EMA potentially being the last defense for Bitcoin at $59,558.
Analysts and traders are diligently tracking Bitcoin’s movement, with many pointing to key support levels and potential price recovery scenarios. If Bitcoin manages to break past resistance levels and initiate a recovery, there is optimism for a positive trend reversal in the near future.
In conclusion, Bitcoin traders are bracing for further volatility and closely watching key levels to determine the next direction of the market. Stay informed and prepared to make informed decisions in this ever-evolving landscape of cryptocurrency trading.