This year has been particularly eventful for the world’s most important cryptocurrency, Bitcoin (BTC): the first spot BTC ETFs (Exchange Traded Funds) were approved, the coin experienced its recent halving event and reached a new all-time high (ATH) of over $73,000 in March.
However, recent trading has been mostly less positive, with the cryptocurrency experiencing several sharp declines over the course of the summer – one of which even saw Bitcoin briefly fall below $50,000.
Even in the subsequent recovery, BTC has returned to a stable level significantly lower than the $67,000 it has been hovering around for most of the spring.
Furthermore, a technical analysis (TA) conducted on August 20 and shared on X by well-known crypto expert Ali Martinez suggests that Bitcoin’s next move could be downward.
Bitcoin technical analysis suggests impending price decline
TD Sequential has issued a strong sell signal on Bitcoin’s hourly chart, according to Martinez’s post. It is a common technical analysis tool designed to identify the timing of a trend reversal or confirmation by analyzing an asset’s past performance over a set period of time.
Still, it’s worth noting that while the tool has been relatively successful in predicting BTC’s movements over the past few months, most of the predicted rises and falls over the past few weeks have been based on relatively minor movements in the crypto market.
Given that an analyst under the pseudonym Stock money lizards recently opined that the Bitcoin price is likely to trade much more stably for now than it has in most previous cycles, and that the Bitcoin Rainbow chart indicates that the cryptocurrency has been in the accumulation phase since late August. The fact that the predicted movement is likely to be small is hardly surprising.
Moreover, BTC’s next move is unlikely to take the price below $58,000 – the nearest support level – and most likely not below $56,000 – the third support zone for the cryptocurrency on August 20.
Nevertheless, the expected decline should prove useful for investors who want to optimize their trading or whose strategy depends on short-term price movements, no matter how small.
Bitcoin price chart
Whatever Bitcoin’s next move, its recent developments in the crypto market have been exciting. In fact, the coin is down 8.93% on the 30-day chart, largely due to a massive drop that affected most asset classes in early August when fears of a major recession emerged.
On the other hand, the downward movement is proving to be fleeting at press time as BTC has been on the rise over the past few days, gaining 3.36% in the last 7 trading days and 3.75% in the last 24 hours. Bitcoin price today is trading at $60,872.
Disclaimer: The content on this website does not constitute investment advice. Investments are speculative. When investing, your capital is at risk.
