BTC’s Next Objective? Analyst Eyes Crucial $70,000 Resistance Zone For Bitcoin
August 12 2024 - 10:30PM
NEWSBTC
After a roller coaster ride in the market last week, Bitcoin shows
endurance, bouncing back from the recent dip to $49,000 and
reclaiming the $60,000 milestone as key to its continuation to the
upside to regain levels lost during the last 20% correction on
August 5. Despite facing hurdles, the largest cryptocurrency
on the market continues to exhibit signs of sustaining the macro
uptrend that has been prevalent since the start of the year.
‘Golden Buying Opportunities’ In a recent analysis highlighting
Bitcoin’s price action and technical outlook, crypto analyst Doctor
Profit shared insights that reveal market sentiment following the
recent tumultuous trading week. Doctor Profit noted that
major players like BlackRock and Fidelity showed confidence by
maintaining their positions in the Bitcoin ETF market and adding
more BTC to their portfolios. This sentiment was further
echoed by the steady and healthy inflows and outflows observed in
ETF activities, showcasing a lack of extreme reactions from
investors despite the correction experienced last week. Related
Reading: XRP Price Reaches Support: Will It Trigger a Turnaround?
Another key point of focus in Doctor Profit’s analysis was the
behavior of whales in the market. These holders accumulated 400,000
BTC within 30 days, equivalent to 2% of the total Bitcoin
supply. Notably, these entities capitalized on the market
dip, showcasing a “smart money” approach by strategically adding to
their positions during the Monday drop. Regarding price
action and technical analysis, Doctor Profit emphasized the
importance of understanding the market range within which Bitcoin
oscillates throughout the year. The analyst asserted that
dips between $60,000 and $50,000 present “golden buying
opportunities,” with each descent below the bottom of the range
signifying a chance to accumulate assets at favorable prices.
Bitcoin Price Forecast Looking ahead, Doctor Profit continues to
believe that the $69,000-$70,000 diagonal resistance is the primary
target for Bitcoin. Despite the potential challenges
posed by the 50-day exponential moving average (EMA) and 200-day
moving average (MA) resistances between $60,000 and $62,000,
respectively, the analyst expresses confidence in overcoming these
hurdles soon. However, the analyst also stated that a
possible brief pullback to the $54,000-$55,000 area is seen as a
temporary setback that could weed out weaker hands from the market.
Related Reading: USTC Preps For Explosive 360% Run, Crypto Analyst
Reveals When This week is also poised to bring heightened market
activity, with pivotal economic data releases such as the producer
price index (PPI) and consumer price index (CPI) numbers expected
to inject volatility into the market. According to Doctor
Profit’s analysis, these developments could set the stage for
significant movements and potentially influence the direction of
future interest rate cuts by the US Federal Reserve in
September. Doctor Profit believes the inflation data may
exceed expectations, potentially paving the way for rate
adjustments at the upcoming Federal Open Market Committee (FOMC)
meeting. At the time of writing, BTC has briefly lost the $60,000
mark, falling over 1% in the last 24 hours to a current trading
price of $59,450. Featured image from DALL-E, chart from
TradingView.com
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