After a roller coaster ride in the market last week, Bitcoin shows endurance, bouncing back from the recent dip to $49,000 and reclaiming the $60,000 milestone as key to its continuation to the upside to regain levels lost during the last 20% correction on August 5.
Despite facing hurdles, the largest cryptocurrency on the market continues to exhibit signs of sustaining the macro uptrend that has been prevalent since the start of the year.
‘Golden Buying Opportunities’
In a recent analysis highlighting Bitcoin’s price action and technical outlook, crypto analyst Doctor Profit shared insights that reveal market sentiment following the recent tumultuous trading week.
Doctor Profit noted that major players like BlackRock and Fidelity showed confidence by maintaining their positions in the Bitcoin ETF market and adding more BTC to their portfolios.
This sentiment was further echoed by the steady and healthy inflowsand outflows observed in ETF activities, showcasing a lack of extreme reactions from investors despite the correction experienced last week.
Another key point of focus in Doctor Profit’s analysis was the behavior of whales in the market. These holders accumulated 400,000 BTC within 30 days, equivalent to 2% of the total Bitcoin supply.
Notably, these entities capitalized on the market dip, showcasing a “smart money” approach by strategically adding to their positions during the Monday drop.
Regarding price action and technical analysis, Doctor Profit emphasized the importance of understanding the market range within which Bitcoin oscillates throughout the year.
The analyst asserted that dips between $60,000 and $50,000 present “golden buying opportunities,” with each descent below the bottom of the range signifying a chance to accumulate assets at favorable prices.
Bitcoin Price Forecast
Looking ahead, Doctor Profit continues to believe that the $69,000-$70,000 diagonal resistance is the primary target for Bitcoin.
Despite the potential challenges posed by the 50-day exponential moving average(EMA) and 200-day moving average (MA) resistances between $60,000 and $62,000, respectively, the analyst expresses confidence in overcoming these hurdles soon.
However, the analyst also stated that a possible brief pullback to the $54,000-$55,000 area is seen as a temporary setback that could weed out weaker hands from the market.
This week is also poised to bring heightened market activity, with pivotal economic data releases such as the producer price index (PPI) and consumer price index (CPI) numbers expected to inject volatilityinto the market.
According to Doctor Profit’s analysis, these developments could set the stage for significant movements and potentially influence the direction of future interest rate cuts by the US Federal Reserve in September.
Doctor Profit believes the inflation data may exceed expectations, potentially paving the way for rate adjustments at the upcoming Federal Open Market Committee (FOMC) meeting.
At the time of writing, BTC has briefly lost the $60,000 mark, falling over 1% in the last 24 hours to a current trading price of $59,450.
Featured image from DALL-E, chart from TradingView.com