Recently, bitcoin has been facing enormous selling pressure, with a potential decline of more than 9% this week.
Image source:
In the past few months, bitcoin has been forming lower highs, which is a put indicator. But current bullish investors are still trying to defend the current resistance, with the main driving force being the increasing market expectations for a rate cut by the Federal Reserve in September. According to the FedWatch Tool, there is a 30% chance of a 50-basis-point rate cut by the Federal Reserve on September 18, and some investors believe that such a rate cut could lead to a rise in risk assets, including bitcoin.
However, the current weakness in the price trend of bitcoin has had a negative impact on the overall sentiment of the crypto industry. Many altcoins have given back recent gains, and some have even experienced further declines, reflecting a decrease in buyer demand. So far, only a few altcoins have shown short-term recovery potential. The key question now is whether bitcoin will rebound from nearby support levels and boost certain altcoins.
Bitcoin price prediction
Failure for bitcoin to break through the moving average could intensify selling pressure and push the price down to the strong support level of $55,724. This support level is crucial for bitcoin bulls, as breaking below it could indicate a downward trend in the price and a retest of the $49,000 support level. The current bitcoin market is facing the urgency to reverse the current downtrend, and for a recovery of momentum, the bulls need to push the bitcoin price above the moving average. Once this goal is achieved, the bitcoin price could rise to $65,000, paving the way for further gains to $70,000.
Currently, bitcoin is trading below the 20-day exponential moving average on the 4-hour chart, indicating that bears are dominating in the short term. In this scenario, bears could push the bitcoin price down to $55,724 and potentially lower to $54,000. For bulls, defending this support area is crucial to prevent further downside. A potential bullish reversal indicator would be a breakout and close above the 20-day moving average, which would allow bitcoin to test the 50-day moving average. If the bitcoin price surpasses this level, it could accelerate the upward momentum and push the price to $65,000, or even higher. Therefore, the current focus for market participants will be on whether the bulls can overcome the current bearish pressure and reclaim key resistance levels.
Disclaimer: FameEX makes no guarantee regarding the accuracy and applicability of official statements from exchanges in this field or any related financial advice.