Bitcoin Market Update: Analyst Sees 65% Chance Of Retest Before Surge To $68,000
August 26 2024 - 1:11PM
NEWSBTC
Bitcoin (BTC) has regained significant momentum over the past week,
breaking free from the $49,000 lows it reached during the broader
market crash on August 5. Since the past seven days, the flagship
cryptocurrency has surged over 8%, climbing above the critical
$63,000 level and reaching as high as $65,000 on Sunday. This
latest rally has crypto analysts optimistic about Bitcoin’s
prospects for further upside, with some eyeing a potential move
towards $68,000 soon. However, not all technical experts are
convinced the path forward will be completely smooth sailing. Two
Paths To $68,000 Bitcoin Crypto analyst Doctor Profit, who has a
notable track record of accurately predicting price movements
dating back to BTC’s $50,000 territory during the August 5 crash,
is now targeting $68,000. A detailed report outlines that the key
lies in Bitcoin’s interaction with the $63,900 line on the 6-hour
chart. Related Reading: Ethereum Price Eyes Fresh Gains: Another
Increase on the Horizon? According to Doctor Profit, there are two
different paths for Bitcoin’s journey to $68,000. The first is for
Bitcoin to maintain its position above the $63,900 level, paving
the way for a quick rise to the projected $68,000 price. The
second scenario involves a temporary dip below $63,900 followed by
a retest of the 50-day exponential moving average (EMA) at $61,900
before rising above $64,000 and moving towards $68,000. This latter
scenario is seen as the more likely outcome, with Doctor Profit
assigning a 65% probability to a retest of the $61,900 EMA support
level before a push towards $68,000. What Open Interest
Heatmap Suggests Lending credence to the possibility of a
short-term pullback, technical analyst Ali Martinez observes that
Bitcoin appears to be trading within a parallel channel on lower
time frames. Martinez suggests a break below the $63,500 support
could see BTC drop as low as $62,800 before potentially bouncing.
Adding another layer to the analysis, the trading platform Hyblock
highlights the importance of the Open Interest (OI) Heatmap in
gauging market sentiment. The current open interest of
$61,000 suggests a possible correction on the horizon, as the
platform pointed out that BTC usually chases these zones, and this
possibility increases after Bitcoin’s 8% surge last week.
Related Reading: Crypto Analyst Says Cardano (ADA) Is Set For
1,000% Rally To $4.29, Here’s Why While this may indicate a
short-term pullback, a successful retest of lower support levels
could set the stage for a strong recovery and a retest of higher
resistance levels, assuming demand remains consistent. At the time
of writing, the largest cryptocurrency on the market is trading at
$63,450, recording losses of over 1% in the 24-hour time frame
after hitting the $65,000 mark late Sunday for the first time since
August 1. Featured image from DALL-E, chart from
TradingView.com
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