On August 1, Bitcoin (BTC) fell to below $63,000, marking its lowest level in more than two weeks.
This decline is related to lowered expectations of a US interest rate cut and the distribution of over 47,000 BTC from the defunct Mt. Gox exchange.
Traders are now watching key support and resistance levels to identify potential buying opportunities.
Analyst Stockmoney Lizards notes that Bitcoin is approaching a critical point, representing a potential entry point for investors. His technical analysis highlights a classic 5-wave uptrend, followed by an ABC retracement on the 4-hour chart, indicating a typical Elliott wave pattern.
Support levels
The immediate buy zone is set between $61,880 and $62,300. A bounce from this range could signal a continuation of the uptrend. If this support fails, the next significant level to watch is around $56,810.
Resistance levels
On the upside, Bitcoin faces resistance at $66,745. A break above this level, on strong trading volume, could indicate the next buying opportunity. The top of the value zone at $69,885 also remains a key resistance point.
Alphractal, a cryptocurrency analysis firm, has voiced concerns about Bitcoin’s current market trajectory, suggesting it may be on the verge of entering a bear market phase.
Recent blockchain data reveals that a segment of Bitcoin investors has started selling off assets to lock in profits following a recent price surge.
CryptoCon confidently predicted an imminent bull market for Bitcoin, downplaying concerns of a recession or prolonged bear market.
Jeff Kendrick, global head of digital asset research at Standard Chartered, predicts Bitcoin could reach $200,000 by the end of 2025, regardless of the outcome of the 2024 US presidential election.