Bitcoin Bulls Failing, BTC Retests $56,500: What’s Going On?
Bitcoin turned lower yesterday, which is visible in the daily chart. As it is, the downtrend remains, retracing from local resistance levels. Even though there were pockets of strength from over the weekend, the diffusion of yesterday questions the strength of buyers. What’s needed is a sharp expansion, ideally above $60,000, as a start. However, if sellers press on, like they are doing right now, and fundamental factors, especially interest from institutions, wane, then BTC traders would be a difficult spot in the coming sessions.
At press time, the world’s most valuable cryptocurrency is down 4% in the past day. Even though traders are upbeat, there must be sharp movements for trend definition. Specifically, the average trading volume of $32 billion recorded yesterday must increase, ideally expanding above $50 billion.
Traders are closely monitoring the following trending Bitcoin news:
- After the drop in June, mainly from miner liquidation and sell-offs from the United States DoJ and Mt. Gox, there is fear that prices might continue plunging again due to the actions of these entities. From the daily chart, the $56,500 level is crucial for buyers.
- A Bitcoin wallet linked to Do Kwon of Terraform recently moved $62 million worth of the coin. While the amount moved is insignificant, even if they are sold, it would still be bearish, especially for other holders.
Bitcoin Price Analysis
BTC/USD is down at press time.
As it is, the coin is wavy, moving inside a narrow range.
From the state of price action, the immediate resistance is around the $60,000 mark. Meanwhile, support is at $56,500.
Since prices are inside the September 1 bear bar, every high below $60,000 might offer entries for sellers targeting August lows.
This outlook will only change if Bitcoin surges above $60,000 at the back of rising volume.
Bulls will have more opportunities if BTC rallies, breaking $65,000.
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