Bitcoin bulls fear that ‘Bart Simpson’ BTC price will drop to $62k
Bitcoin (BTC) Rebounds $64,000 to Aug. 25 Weekly Close BTC Price Gains May Be Wiped Out Soon, Analysts Warn.
BTC price will face a struggle to maintain its gains
Data from Cointelegraph Markets Pro and TradingView showed a flat weekend for BTC/USD after a quick gain at the end of the previous Wall Street trading session.
These followed promising signs from the US Federal Reserve on policy reforms in September, notably the first interest rate cut since 2019.
Bitcoin was slow to react at first but eventually reached a two-week high near $65,000 before consolidating lower.
Analyzing the possible movements for the next days, the famous trader CrypNuevo was cautious.
Order book liquidity, determined by the thread on X, favored a drop in support that would destroy the longs of late.
“Levels with more liquidity are $63.5k (1h50EMA) and $62.2k,” he summarized, referring to the 50-time exponential moving average on the 1-hour chart.
BTC/USD can therefore print the famous “Bart Simpson” pattern, which is headed towards the 50-period EMAs on the 1-hour and 4-hour time frames.
“It makes sense because they're filling wicks, stopping short positions and catching some traders,” he explained.
“The drop then washes out in a long squeeze to support the delta fluids.”
Other popular social network traders agreed with the idea, among them Trader ELM, which dropped to $62,700 before continuing higher.
After BTC pumps, buying “pure attempts” like 62.7K is historically a very low exchange rate, CryptoChase, an affiliate trader, protested earlier in the day.
“When BTC is ready to rip, it rarely delivers clean tests.”
CryptoChase suggested that a break above $65,700 would clearly indicate bullish momentum, while on the other hand, a move down to $60,000 would require deeper observation.
“See how PA will bounce back if 60K-61K is retested (to aspire to another daily resistance of 65K or short to 57.5K),” he wrote with an explanatory chart.
Analyst: Bitcoin wants to return to post-halving normal
Highlighting, trader and analyst Rekt Capital offers an optimistic view on BTC's price performance.
Related: Price Analysis 8/23: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Bitcoin is close to retrieving what it calls a “post-halving rally zone” after it halved its previous April block subsidy.
“The importance of this technical phenomenon cannot be underestimated,” he argued.
“Essentially, Bitcoin is re-aligning with historical post-halving price trends.”
The accompanying chart compares this year's post-halving price behavior with the previous post-2020 cut.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
