This year has been particularly eventful for the world’s premier cryptocurrency, Bitcoin (BTC) as the coin saw the approval of the first-ever spot BTC exchange-traded funds (ETFs), experienced its most recent halving event, and reached a new all-time high (ATH) above $73,000 in March.
More recent trading has, however, mostly been less positive with the cryptocurrency seeing several major drops throughout summer – one of which even briefly sent Bitcoin below $50,000.
Even the subsequent recovery has seen BTC reclaim a substantially lower stable level that the $67,000 it has been staying close to for much of the spring.
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Additionally, technical analysis (TA) conducted on August 20 and shared on X by the prominent crypto expert Ali Martinez hints that Bitcoin’s next move might be downward.
Bitcoin technical analysis hints at imminent price drop
TD Sequential issued a strong sell signal on Bitcoin’s hourly chart, per Martinez’s post. It is a common technical analysis tool designed to detect the timing of a trend reversal or confirmation by analyzing an asset’s earlier performance over a set time frame.
Still, it is worth pointing out that while the tool has been relatively successful in predicting BTC’s moves in recent months, most of the forecasted rallies and drops in recent weeks have seen only relatively minor crypto market moves.
Given that, an analyst known by the pseudonym Stockmoney Lizards recently opined that Bitcoin is likely, for the time being, to trade substantially more steadily than has been the norm in most previous cycles and that the Bitcoin Rainbow Chart indicates the cryptocurrency is, as of late August, in the accumulation phase, the fact the predicted move is likely to be diminutive is hardly surprising.
Additionally, BTC’s next move is unlikely to take it below $58,000 – the nearest support level – and highly unlikely to lead to fall under $56,000 – the third support zone for the cryptocurrency as of August 20.
Nonetheless, the expected drop is likely to prove useful for investors seeking to optimize their trades or to those whose strategy depends on short-term price moves, no matter how minor.
Bitcoin price chart
Whatever Bitcoin’s next move may be, its recent crypto market moves have been exciting. Indeed, the coin is 8.93% in the red in the 30-day chart, largely thanks to a massive decline that affected most asset classes in early August as a major recession scare emerged.
On the other hand, the downward move is proving ephemeral by press time as BTC has been climbing in recent days and is up 3.36% in the last 7 days of trading and 3.75% in the green in the last 24 hours. Bitcoin price today stands at $60,872.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
