The soaring optimism generated earlier this week when Bitcoin and Altcoin prices rose was tempered on August 12 when BTC fell below $ 43,000. This led some analysts to warn that last week’s price action has been nothing more than a dead hop.
Data from Cointelegraph Markets Pro and TradingView shows that an early morning sell-off pushed the price of Bitcoin (BTC) to a low of $ 43,752 and the bulls are struggling to pull the price back to $ 45,000 at the time of writing.
Here’s what analysts are saying about the current Bitcoin price movement and what they expect in the short term.
$ 43,600 and $ 43,000 are the main support levels
According to market analyst and Cointelegraph contributor Michaël van de Poppe, Bitcoin’s decline from $ 45,000 to $ 43,500 was “perfectly normal,” with higher timeframe charts showing a declining divergence, suggesting that “we have another Corrective movement ”.
Poppe identified $ 43,600 as “Support Level 1” and $ 43,000 as “Support Level 2” and noted that these are the most important areas to be aware of at this time.
In the short term, Poppe indicated that Bitcoin price could potentially rise back to $ 45,000 and then fall again in order to retest that level of support.
“If those two levels of support are lost, then we’ll probably look at $ 42,000 next, and if that doesn’t hold up, then it’s $ 41,000. And for me this is the hiatus where I want to start craving a lot as I don’t want it to drop any further as the only level we have after that is $ 38,000. “
Cops just take a breather before pushing higher
Thursday’s decline in Bitcoin price was also viewed as a normal move by David Lifchitz, managing partner and chief investment officer at ExoAlpha. Lifchitz referred to the “almost uninterrupted run-up of the last 2 plus weeks” as a sign that “the cops need a break before they continue their advance”.
According to him, the “$ 36,000 for BTC and $ 2,300 for Ether are obvious targets,” but he went on to say that “no one knows how big the pullback will be from where we are now.”
“But maybe the dips could be bought before these levels are reached. Of course only in the event that there is no other regulatory drama, otherwise a revisit of the level of 30,000 US dollars for BTC and 1,800 US dollars for Ether would not be ruled out. “
$ 45,200 has been a solid level of Bitcoin support in the past
According to Rekt Capital, a pseudonymous Twitter analyst, the price level of $ 45,200 has been a difficult resistance in the past.
Unfortunately #BTC failed to hold ~ $ 45,200
That is, $ BTC has not previously done a clean retest of ~ $ 45,200 (red circles)
Earlier this year, BTC would have to lower the wick to the orange areas before moving up
Hold Orange and BTC will be reversed #Crypto #Bitcoin pic.twitter.com/12NQaPysXF
– Rekt Capital (@rektcapital) August 12, 2021
In previous instances, when BTC was trading near these levels, the price was retested and held support at around $ 44,200 before another rally occurred.
Based on this analysis, the price will reverse and go up if BTC can hold near this level.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.