Bitcoin (BTC) reached a weekly close near $64,000 on Aug. 25, but analysis warns that BTC’s price rally may soon be reversed.
BTC Price Struggles to Maintain Gains
Data from Cointelegraph Markets Pro Trading View BTC/USD traded sideways over the weekend after sharply rising at the end of the previous Wall Street trading session.
These follow encouraging signals from the US Federal Reserve in September regarding policy easing, specifically cutting interest rates for the first time since 2019.
Bitcoin was initially slow to react but eventually reached a two-week high of nearly $65,000 before trading lower.
However, analysing the potential movements over the next few days, popular trader CrypNuevo sounded cautious.
The liquidity of the order book was determined by him. X Threadsfavored a drop to support to liquidate late long positions.
“The levels where more liquidation will occur are $63.5k (the 50-hourly EMA) and $62.2k,” he summarized, referring to the 50-period exponential moving average on the hourly chart.
Hence, BTC/USD may retrace back to the 50-period EMA on the 1-hour and 4-hour timeframes, depicting a classic “Bart Simpson” pattern.
“That would make sense as it would fill in the wick, stop short positions and trap some breakout traders,” he explained.
“Then the pullback will wipe out delta liquidation and support a long squeeze.”
Other popular social media traders echoed this sentiment, including trader ELM, who saw the price drop to as low as $62,700 before continuing its climb.
“Buying a ‘clean retest’ like 62.7K after a BTC rally has historically had a very low hit rate,” said peer CryptoChase. Refuted The day.
“When BTC is ready to crash, it rarely provides a clean retest.”
Crypto Chase suggested that a breakout above $65,700 would signal a clearer bullish momentum, but noted that a drop to $60,000 would warrant careful monitoring.
“Watch how PA reacts if 60K-61K gets retested (to decide whether to go long for another test of 65K daily resistance or short towards 57.5K~),” he wrote along with an explanatory chart.
Analyst: Bitcoin aims to return to normal after halving
Looking at the bigger picture, trader and analyst Rekt Capital expressed optimism about BTC’s price movement.
Related: 8/23 Price Analysis: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
He noted that Bitcoin is on the verge of reclaiming the territory it previously occupied after April’s block subsidy halving, which he called the “post-halving replenishment range.”
“The importance of this technology event cannot be underestimated,” he says. Claimed.
“Essentially, Bitcoin is re-syncing with its historical post-halving price trend.”
The attached chart compares the price movement after this year’s halving with the price movement after the previous halving in 2020.
This article does not contain any investment advice or recommendations. Any investment or trading involves risks and readers should conduct their own research when making any decision.
