Bitcoin Bounces Back: Analyst Eyes Crucial $70,000 Resistance Zone
After a tumultuous week in the market, Bitcoin has demonstrated resilience, rebounding from a recent dip to $49,000 and reclaiming the $60,000 milestone. This recovery is crucial for Bitcoin’s continuation to the upside, aiming to regain levels lost during the 20% correction on August 5.
Despite obstacles, the largest cryptocurrency continues to show signs of sustaining the macro uptrend that has been prevalent since the beginning of the year.
‘Golden Buying Opportunities’
In a recent analysis of Bitcoin’s price action and technical outlook, crypto analyst Doctor Profit provided insights into market sentiment following the recent volatile trading week.
Doctor Profit highlighted that major players like BlackRock and Fidelity have shown confidence by maintaining their positions in the Bitcoin ETF market and adding more BTC to their portfolios. This sentiment is further supported by the steady and healthy inflows and outflows in ETF activities, indicating a lack of extreme reactions from investors despite the recent correction.
A key point in Doctor Profit’s analysis was the behavior of whales in the market. These large holders accumulated 400,000 BTC within 30 days, equivalent to 2% of the total Bitcoin supply. These entities capitalized on the market dip, showcasing a “smart money” approach by strategically adding to their positions during the downturn.
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 maintains that the $69,000-$70,000 diagonal resistance is the primary target for Bitcoin. Despite potential challenges posed by the 50-day exponential moving average (EMA) and 200-day moving average (MA) resistances between $60,000 and $62,000, the analyst expresses confidence in overcoming these hurdles soon.
However, the analyst also mentioned that a possible brief pullback to the $54,000-$55,000 area could act as a temporary setback, weeding out weaker hands from the market.
This week is expected to bring heightened market activity, with pivotal economic data releases such as the producer price index (PPI) and consumer price index (CPI) numbers likely to inject volatility into 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.