Bitcoin Analyst: 4 Crucial Support Levels To Watch If BTC Falls
August 27 2024 - 7:30PM
NEWSBTC
Bitcoin is trending lower when writing, cooling off after the
encouraging leg up on August 23. Although the uptrend remains, and
the coin is not far away from $63,000, there is no discounting the
possibility of sellers pressing on. The alignment with the dip of
early August could trigger another wave of liquidation, causing
panic. Bitcoin Shaky, The First Two Levels To Watch Technically,
Bitcoin is within a bullish breakout formation from the bull flag
established after the expansion on August 8. Additionally, from a
volume analysis perspective, bulls stand a chance since prices are
still inside the bull bar of August 23. As long as trading volume
remains light as prices trickle lower, buyers may jump back and
drive prices higher above $66,000. Related Reading: New ATH
Incoming? Expert Says PEPE Poised For ‘Humongous’ Breakout Even so,
assuming Bitcoin bears have the upper hand, one analyst on X thinks
it will be important for traders to closely monitor how prices will
react at the following four reaction lines. From the Bitcoin
cost-basis comparison via CryptoQuant, the first support level, now
resistance following the ongoing dump, is $63,450. At this price
point, the analyst said this is the average price at which new
whales buy BTC. It remains to be seen whether prices will recover
and print above $64,000 in the coming days. However, the fact that
whales are in the picture is a net positive. Typically, whales,
unlike retailers, tend to be HODLers and won’t be shaken off
whenever prices fluctuate. If bears are unyielding and prices break
below $60,000, the analyst continued traders should watch how
prices react at $55,540. From the trader’s analysis, Binance users
have placed their support at $55,540. Therefore, prices dropping
below this level could easily trigger panic selling as traders on
this exchange dump scramble for safety. Miners And Long-Term
Holders: The Last Walls A level deeper, a key support level will be
$44,400. This zone is where most miners are deemed profitable. As
long as prices trade above this line, most miners, most of whom are
whales, can HODL, expecting price gains. In early August, Bitcoin
fell hard but didn’t breach this zone, highlighting its importance
regarding BTC price action. Related Reading: Dogecoin: Will History
Repeat Itself? What This 3-Year Pattern Means Below this, $25,000
is another accumulation level that traders will watch out for if
there is a general collapse. The $25,000 is the average price at
which long-term holders (LTHs) bought. LTHs are those who bought
BTC over 155 days ago. This cohort mostly comprises whales and
network believers. Technically, a break below $50,000 and August
2024 lows might be the basis for another leg down to $40,000 and
worse. While bears might take over, there are also supportive
factors that continue to spur bulls on. One of the world’s largest
asset managers, BlackRock, recently added BTC to its Strategic
Global Bond Fund as a hedge against traditional assets. Its spot
Bitcoin ETF, IBIT, already holds billions of BTC on behalf of
its institutional clients. Feature image from DALLE, chart from
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