The first week of August saw Bitcoin’s price grappling with short-term uncertainty, finding support around the $29.1k level as bulls defended their position. Despite this, the altcoin market failed to capitalize on Bitcoin’s momentary weakness, leading experts to express a bearish sentiment regarding the overall crypto landscape.
Traders in the crypto sphere are advised to closely monitor high-impact news slated for Thursday and Friday, notably including the Consumer Price Index (CPI) and Core Producer Price Index (Core PPI), as these events are expected to significantly influence forthcoming statements from the Federal Open Market Committee (FOMC).
Bitcoin Price Analysis
Doctor Profit, a prominent crypto trader boasting over 186k followers, recently conducted a technical analysis that sheds light on Bitcoin’s potential price trajectory. According to the analysis, Bitcoin appears to be gearing up for a decline to the $24k mark in the ensuing weeks or months.
The analyst notably cautioned traders engaging in short positions to exercise caution, particularly highlighting the importance of the daily Exponential Moving Average 50 (EMA50) as a critical determinant of future price action.
At present, the EMA50 serves as a formidable resistance level. Doctor Profit anticipates a potential rally towards $32k if bullish forces manage to breach and sustain momentum above the daily EMA50.
The analyst stated, “If the market facilitate a breakout beyond the EMA50 and secure a foothold above $32,000, I will consider re-entering short positions. For now, I intend to adhere to a straightforward approach: maintaining existing short positions in the $31-30k range and realizing profits exclusively upon the restoration of the daily EMA50.”
Two plausible scenarios are outlined by the analyst. The first involves an ongoing correction in Bitcoin’s price trajectory, leading it toward the $24k threshold. The alternative scenario envisions a price surge to $32k, followed by a severe capitulation event driving the price back to the $24k target.
Source: https://coinpedia.org/bitcoin/btc-price-this-week-will-bitcoin-price-break-32k-or-fall-to-24k/