Bitcoin Bulls Risk A Dip In BTC Price Down To $62K

Bitcoin managed to retain its recent gains over the weekend, but there are numerous arguments suggesting a potential price retracement. 

Source: www.finextra.com

BTC hovered around $64,000 as of the August 25 weekly close, with analysis indicating that these gains could be quickly reversed.

BTC Price Faces Challenges In Maintaining Its Recent Gains

Data showed a flat weekend for BTC/USD following significant gains at the end of the previous Wall Street trading session. These gains came after the United States Federal Reserve signaled potential policy easing in September, including the first interest rate cuts since 2019.

Bitcoin initially reacted slowly but eventually reached two-week highs near $65,000 before consolidating lower. 

Looking ahead, popular trader CrypNuevo expressed caution. In a thread on X （formerly Twitter）, he noted that order book liquidity seemed to favor a drop to support levels, potentially leading to the liquidation of late long positions. He identified $63.5K and $62.2K, corresponding to the 50-period exponential moving average on the 1h chart, as key levels to watch. BTC/USD might form a Bart Simpson pattern, retracing to these EMAs on the 1h and 4h charts.

He also explained that such a move would fill the wick, close out short positions, and trap some breakout traders. Trader ELM agreed with this view, predicting a dip to $62,700 before a potential upward continuation. However, Crypto Chase countered, noting that buying after such dips historically has a low success rate. Chase suggested that a breakout above $65,700 would signal stronger bullish momentum, while caution was advised if BTC dropped back to $60,000.

He recommended monitoring price action closely if BTC retests the $60K- $61K range to decide whether to go long for another test of daily resistance at $65K or short towards $57.5K.

Bitcoin Aims To Revert To Its Post-Halving Trend

Looking at the bigger picture, trader and analyst Rekt Capital provided an optimistic perspective on BTC price performance. He highlighted that Bitcoin was nearing a return to the levels it had reached after its April block subsidy halving, which he referred to as the post-halving reaccumulation range.

He emphasized the significance of this technical event, noting that it marked a critical phase. An accompanying chart compared this year’s post-halving price behavior to that observed following the previous halving in 2020.

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