Bitcoin’s Value Is Currently Capped at $60,000

Bitcoin has been under significant selling pressure recently and is on track to decline by more than 9% this week.

Source: www.cointribune.com

For the past few months, Bitcoin has consistently formed lower highs, which is a bearish indicator. This situation places the responsibility on bullish investors to defend the current support levels. The markets are anticipating a major catalyst in the form of a potential rate cut by the United States Federal Reserve this September. According to the FedWatch Tool, there is a 30% chance of a 50 basis point rate cut on September 18. Some believe that such a rate cut could lead to a rally in risk assets, including Bitcoin.

However, Bitcoin's current weakness has negatively impacted overall sentiment in the cryptocurrency sector. Many altcoins have relinquished their recent gains and some have even dropped further, reflecting a decrease in buyer demand. Only a few altcoins are showing potential for a near term recovery. The key question now is whether Bitcoin will bounce back from its nearby support levels and potentially lift selected altcoins along with it.

Bitcoin Price Overview

Bitcoin's failure to break above the moving averages is likely to intensify selling pressure, potentially driving the price down to the strong support level at $55,724. This support is critical for the bulls, as a decline below this point could indicate the beginning of a significant downward trend. Should the price fall through this support, the BTC/USDT pair might test the pivotal support level at $49,000. The bulls face increasing urgency to reverse the current trend. To regain momentum, they will need to push the price decisively above the moving averages. Achieving this could pave the way for a potential rise to $65,000, and subsequently, a move toward $70,000. 

Currently, the pair is trading below the 20 exponential moving average on the 4 hour chart, signaling that bears have control in the short term. In this context, sellers will likely aim to drive the price down first to $55,724 and then potentially to $54,000. The defense of this support zone by buyers will be crucial in preventing further declines. A key indicator of a potential bullish reversal would be a decisive break above and a close beyond the 20 EMA. Such a move could lead the pair to test the 50 simple moving average. If the price surpasses this level, it could accelerate the upward momentum towards $65,000, and possibly even higher. Thus, the immediate focus for market participants will be on the ability of the bulls to overcome the current bearish pressure and reclaim key resistance levels.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.