In a recent podcast on Altcoin Daily, crypto trader Tom Crown shared his analysis of Bitcoin’s current position and outlook, offering a nuanced view of the market direction.
Let’s explore!
The current situation of Bitcoin
Bitcoin is trading at around $61,400, a level it has held for about 160 days. After a 35% increase from August 5 to August 16, Bitcoin has seen a correction and attempted to revisit the $61,000 mark on August 21, but encountered resistance at $61,227. Over the past week, Bitcoin has been trading in a tight range of $58,000 to $62,000, indicating a period of consolidation after recent gains. Currently, Bitcoin is about 6% below its recent peak, raising questions about the continuation of its uptrend.
Despite this apparent stagnation, Crown sees positive signs. The dovish stance of the US Federal Reserve and the expectation of a rate cut in September could fuel the upward trend.
However, Bitcoin recently experienced a “death cross” – a bearish technical signal where the short-term moving average crosses below the long-term moving average. Historically, this indicator has sometimes preceded a price rally in Bitcoin, suggesting that the current signal may not be as bad as it seems.
Important levels and possible steps
The crown is eyeing crucial support and resistance levels. For Bitcoin to signal a bullish reversal, it must recover and sustain above $62,800. If it succeeds, Bitcoin could target a range between $69,000 and $70,000. Conversely, if it breaks below the August 5 low of $49,000, Bitcoin could test the lower support at $38,500. Such a decline would likely be accompanied by significant market events.
Bullish and bearish scenarios
In the worst-case scenario, he claims, a significant sell-off could push Bitcoin below $49,000 and potentially find support at around $38,500, a level considered crucial as it could attract buyers looking for bargains.
A move above $63,000 could, in a best-case scenario, put Bitcoin on an uptrend towards $70,000. Ideally, Bitcoin could reach new all-time highs, with some predictions even suggesting a long-term potential of $250,000, although this is speculative.
