Bitcoin (BTC) has been hovering around $64,000 for the past few days, as analysts warn that BTC’s price gains could soon be wiped out.
BTC/USDT Hourly Chart
BTC Price Faces Difficulty in Sustaining Uptrend
Data from TradingView shows BTC prices stabilizing after a sharp increase since mid-last week. The increase was driven by optimistic signals from the US Federal Reserve about policy easing in September, specifically the first interest rate cut since 2019.
Bitcoin was slow to react initially, but eventually hit a two-week high of nearly $65,000 before correcting lower.
However, when analyzing potential moves in the coming days, popular analyst CrypNuevo is cautious.
In a series of articles on X, he identified that order book liquidity is favoring dips to test support, which will liquidate late Long positions.
“The levels with more liquidations are 63.5k (1-hour EMA 50) & 62.2k”.
BTC Liquidation Level on Binance
BTC/USD is likely to form a classic “Bart Simpson” pattern, falling back to the 50-period EMA on the 1-hour and 4-hour timeframes.
“This makes sense because it will fill the wick, deter shorts and trap some traders buying the breakout,” he explained.
“The pullback will then wipe out delta positions with a long squeeze down to support.”
BTC/USDT 1-hour chart with 1-hour, 4-hour EMA 50
Other prominent analysts on social media agree with this opinion, including Trader ELM, who believes that there will be a drop to $62,700 before continuing to rise.
However, another analyst, Crypto Chase, countered that day, saying: “This move has historically been rare.”
“When BTC is ready to breakout, it rarely provides such retests.”
Crypto Chase suggests that a breakout above $65,700 would provide a clearer signal of bullish momentum, while conversely, a close watch is needed if the price drops back to $60,000.
“Let’s see how price reacts if the $60K-61K zone is retested (to determine whether to buy for a retest of $65K or short towards $57.5K),” he wrote with an explanatory chart.
BTC/USDT Daily Chart
Analyst: Bitcoin Looking to Return to Post-Halving Model
Looking more broadly, analyst Rekt Capital has taken an optimistic view on BTC price performance.
According to him, Bitcoin is close to reclaiming the area it occupied after the halving in April – an area he calls the “post-halving reaccumulation range.”
“The importance of this technical event cannot be underestimated,” he argued.
“In essence, Bitcoin is repeating historical price trends after the halving.”
BTC/USDT Weekly Chart
The accompanying chart compares price behavior after this year's halving with what happened after the previous halving in 2020.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
