“It would make sense because they likely filled the wick, stopping short positions and trapping breakout traders. Then, the drop would trigger delta liquidations through a long squeeze down to support.”
Currently, attention is centered on the $63,300 and $62,500 levels, as a break below these could lead to a wave of liquidations. According to Coinglass data, there are around $400 million in bull positions within these price ranges, poised for liquidation.
On the other hand, the $65,400 resistance level is a barrier for bulls, defining the short-term area that needs to be broken to sustain the bullish trend. Here, $150 million in short positions could be wiped out by the unpredictable positive volatility of the cryptocurrency.
How Bitcoin will respond to this stimulus and how its price will fluctuate in the near future, following today’s temporary dip, remains to be seen.
Source: https://www.coinglass.com/pro/futures/LiquidationHeatMap
Today’s dip doesn’t faze Bitcoin traders. Despite the price not being at its best, cryptocurrency traders remain bullish for the last quarter of the year.
As mentioned earlier, changes in the Federal Reserve’s monetary policies could fuel the markets, potentially driving a new leg up in all risk-on markets.
With inflation slowing down and a possible return to “quantitative easing,” investors might shift capital from bonds to stocks or crypto.
For this reason, there’s a strong likelihood that Bitcoin prices will hold bullish surprises from September onwards.
Some experienced speculators, like user X “ELM,” suggest that Bitcoin could easily dip to the $62,700 zone before resuming its bull run. This retest could be followed by a break of local resistance levels and an approach toward $70,000.
“Here’s my $BTC plan for this week: Retest $62,700 and then move up to grab $71K liquidity,” tweeted Trader ELM (@FerasElma) on August 25, 2024.
Another crypto trader points out that before aiming for higher bullish targets, it’s essential to see a recovery of $65,700, which would offer a clearer technical perspective.
Analysts like those from Rekt Capital agree that Bitcoin could see significant positive performance from now on. They believe the crypto is aligning with post-halving cyclical trends after surpassing historical highs earlier than expected.
As they state, “The importance of this technical event cannot be underestimated.”
This could now set off the classic bull leg up in the months following the block reward halving, aiming for a break of all-time highs.
By year-end, forecasts are largely bullish, with targets ranging from $80,000 to the much-anticipated $100,000, a prediction made months ago by Standard Chartered.
Buckle up, traders.