Another week is passing by, and Bitcoin (BTC) is still holding the major support at $58,000. A lot of fear is still permeating the market – can Bitcoin survive the monthly and weekly close in a viable position?
It’s always darkest before the dawn
The waiting goes on. Bitcoin holders from previous bull markets will probably know that with the number one cryptocurrency, it’s always darkest before the dawn. Many must have experienced selling when things seemed as though recovery was impossible.
This sideways and downwards trajectory has dragged on for 170 days, and if the weekly and monthly closes aren’t positive – will this herald a new, and sharper decline in price?
Only the market knows what will happen next. For those that have been holding all this way, the decision needs to be made to either sell, and potentially take a loss, or to hold firm in the knowledge that Bitcoin is vastly superior to fiat currencies, and that as governments continue to debase these currencies, Bitcoin and other hard assets should rise against them.
$BTC in upward sloping channel
Source: TradingView
In the short term time frame, it can be seen that the $BTC price is following an upward sloping channel since early August. Now that the price is holding to the bottom of this channel, it will either swing back up, or fall through.
Some wicks through the bottom of the channel have been bought up quickly so far, and a couple have tagged the major support at $58,000, which also happens to be the level of the 0.786 fibonacci for this move – a great place to see a bounce.
It now remains for $BTC to break above the first target of the 0.618 fibonacci at around $59,500, which could then encourage the bulls to push the price up to the 0.382 fibonacci at $61,600.
Wider picture looks positive
Source: TradingView
Moving out to the daily time frame, things look quite positive. The price is still traversing inside the bull flag/widening wedge, and the $58,000 horizontal level is holding fine as major support.
The daily Stochastic RSI is approaching the bottom, and once it ticks back up and passes through the 20 level, this should combine with the weekly Stochastic RSI to signal the necessary momentum to take $BTC back to the top of the flag.
Beware!
However, should the $BTC price fall out the bottom of the current upward sloping channel and confirm below, this would potentially have the effect of also breaking the major $58,000 horizontal support. A fake out of the weekly Stochastic RSI could result, and there would be the possibility that the $BTC price falls all the way down to the next major horizontal support at $51,000. A pivotal time is upon us.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/08/bitcoin-btc-claws-its-way-higher-major-support-holding-so-far