On Monday (August 26), Bitcoin failed to break through the $65,000 resistance firmly and fell back below $64,000. Bulls may face the classic "Bart Simpson" technical pattern. Former US President and Republican presidential candidate Donald Trump's new cryptocurrency project channel was renamed World Liberty Financial, announcing the launch of a new decentralized finance (DeFi) platform.
The Trump family made some unusual moves at the beginning of this week. The Telegram channel "The DeFiant Ones" opened by Donald Trump Jr. for his new crypto project has been renamed World Liberty Financial.
"You guys, we all know how banks and financial institutions rig the system against everyday Americans. They exclude people, deny loans, drown people in paperwork, and squeeze them with legal and processing fees," the channel said in a new announcement. "Our whole family has been there. We've been dumped by banks, banned from platforms, and subjected to every political game imaginable."
"These banks and the elites who control them wanted absolute control, but now that's all going to end. We're making finance great again by putting power back in your hands."
“This new DeFi platform will cut out corrupt, expensive, and inefficient middlemen. No more bureaucrats deciding your fate. It’s time to modernize this unfair and outdated system and give everyone access to the same opportunities the elites have been hoarding. Join us and together we can make finance work for the people again.”
Forbes reported that Trump is preparing a "raid" on Wall Street. Now, as concerns grow about a total collapse of the dollar, he says it's time to take a stand against Wall Street and support his family's plan for a "financial revolution."
In addition to the positive news about the US election in November, the Bitcoin and cryptocurrency markets also received a major signal of dovish stance from the Federal Reserve.
“The time has come for a policy adjustment, and confidence has increased that inflation is on track to 2 percent, and we do not seek or welcome further cooling in the labor market,” Fed Chairman Jerome Powell said at the central bank’s annual conference in Jackson Hole, Wyoming. “We will do everything we can to support a strong labor market while making further progress toward price stability; the level of the policy rate provides ample room to address risks, including further adverse weakness in the labor market.”
Nick Timiraos, a reporter for the Wall Street Journal known as the "Federal Reserve's mouthpiece," posted a comment on Twitter (now renamed X) on Friday: "Powell has completed the policy shift. Two years ago, Powell hinted that the Fed would accept a recession in exchange for inflation returning to normal. Now, his position has become a full-scale dovish one."
However, the cryptocurrency circle reported a negative news about the European market over the weekend. On Sunday, the TON (The Open Network) token plummeted by more than 20%, and fell to $5.38 after panic selling. Pavel Durov, founder and CEO of Telegram, a global communication software with 900 million users, was arrested by the National Anti-Fraud Office at a French airport and was put on the wanted list a few minutes before he got off the plane.
The TON blockchain was originally developed by Durov and his team, but Telegram ceased direct involvement in 2020 due to legal and regulatory issues. Despite this, the TON community continues to develop the project, forming an active ecosystem.
Bitcoin Technical Analysis
CoinTelegraph pointed out that the Federal Reserve released positive signals of easing policy in September, especially the first interest rate cut since 2019. Bitcoin was initially slow to react, but eventually hit a two-week high of nearly $65,000 before consolidating lower.
However, popular trader CrypNuevo is cautious when analyzing potential moves in the coming days. In a Twitter post, he determined that order book liquidity favors a drop to support, which will liquidate late longs. He concluded: "Levels with more liquidations are $635k (1-hour 50EMA) and $622k," referring to the 50-period exponential moving average on the 1-hour chart.
As a result, Bitcoin could form a classic “Bart Simpson” pattern, returning to the 50-period EMA on the 1-hour and 4-hour timeframes. “This makes sense because they will fill the gap, stop short positions, and trap some breakout traders,” he explained. “The decline will then wash out the delta liquidations and provide support through the long squeeze.”
Other popular social media traders agree with this idea, including trader ELM, who saw the price of Bitcoin fall to $62,700 before continuing to rise.
Still, trader Crypto Chase countered the same day: “Buying a ‘clean retest’ like 62.7K after a Bitcoin rally has historically had a very low hit rate. Bitcoin rarely offers a clean retest when it is ready to be ripped apart.”
Crypto Chase said that a break above $65,700 would be a clearer indication of bullish momentum, whereas a pullback to $60,000 would warrant close monitoring. He wrote alongside an explanatory chart: “Watch how PA reacts if 60K-61K is retested to determine whether to go long to retest daily resistance at 65K or short to 57.5K.”
In a broad sense, trader and analyst Rekt Capital is optimistic about Bitcoin price performance. He noted that Bitcoin is about to reclaim the area it occupied after the block subsidy halving in April this year, which he called the "post-halving accumulation range." He emphasized: "The importance of this technical event cannot be underestimated."
“Essentially, Bitcoin is resynchronizing with its historical post-halving price trend.”
The accompanying chart compares the price action after this year’s halving with the price action after the last halving in 2020.
