Some consternation is probably being felt across the crypto market, as Bitcoin returned to the major support at $58,000 once again. Will $BTC keep knocking on this level until it eventually falls through? Or are the last few weaker hands being shaken out before a surge back to the highs?
Don’t get caught up in all the noise
The life of a holder of Bitcoin cannot be easy. There is the constant spectre of some huge entity selling, and the knowledge that sometimes they actually do. On the other hand, the ETFs continue to buy, and there is the positive news that the Federal Reserve is very likely to begin cutting interest rates in September.
However, it’s very easy to get caught up in all the everyday noise. Sometimes it’s best to just step back, take a deep breath, and remember that Bitcoin is the scarcest asset in the world, and that once national governments start printing more currency, which they simply must do, in order to be able to pay the interest on their debts, hard assets like Bitcoin become extremely desirable.
$58,000 horizontal support holding fine
Source: TradingView
Looking at the $BTC price on the short time frame, it can be seen how the price has been respecting the $58,000 horizontal support level. Now the price is back above, it might be expected that it continues upward, inside the recently formed upward sloping channel.
A long and arduous path
Source: TradingView
Zooming out, one can observe the long and arduous path that Bitcoin has followed since beginning its sideways and downward meanderings in mid-March of this year. More than 5 months of this price action finds $BTC more than 23% lower, corresponding to more than $14,000 less in price.
Nevertheless, for those who are worried about this, from a market perspective, everything is totally fine. The $BTC price is in a local uptrend right now, having just made a higher low. A higher high beyond $65,000 could potentially be the next step.
The momentum for this move can be found in the Stochastic RSI at the bottom of the above chart. All the short time frame Stochastic RSIs have now bottomed, and even the daily Stochastic RSI is fast coming down.
While the recent $6,000 drop in only 48 hours might have caught many off guard, an upward price move is now probably overdue.
A cautionary note
As a note of caution, it is not enough for the $BTC price to simply just get back to the top of the widening wedge once again. If it is rejected from there, and doesn’t make a higher high ($70,000), this could be a time for some major concern.
However, until we arrive at this pivotal moment, price is just following what is a perfectly normal trajectory, after the massive price surge which led into the all-time high. Breath in - Bitcoin might be down, but it certainly isn’t out.
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.
