BTC Price Analysis: Why $66K Level Is Important To BTC

As a seasoned researcher with years of experience in the dynamic world of cryptocurrencies, I find myself constantly intrigued by the ever-evolving trends and patterns in the market. The recent performance of Bitcoin (BTC) is no exception, and it’s always fascinating to dissect the various factors influencing its price movements.


The price of Bitcoin (BTC) briefly touched new liquidity from its weekly support level, but then lost it for two reasons as it approached the $62,000 mark. In a positive development, Bitcoin saw a 1.5% increase in just one day and had already grown by 3.5% over the past seven days. As for other major cryptocurrencies, Ethereum (ETH), Cardano (ADA), Avalanche (AVAX), and Chainlink (LINK) exhibited selective movements, with Ethereum, in particular, maintaining a bullish stance alongside these others.

BTC Price Market Movers: Short-Term Holders’ Costs and Consistent BTC ETF Inflows

Bitcoin’s price has repeatedly fallen short of breaking through the resistance at $62,000, with the key area now lying between $64,000 and $66,000. As per CryptoQuant’s blockchain analysis, investors who own Bitcoin for less than 155 days are categorized as short-term holders.

The graph indicates that Bitcoin investors who have held onto their coins for between one and three months are averaging a purchase price of around $64,206, while those who have held for three to six months are averaging slightly higher at approximately $65,898. Considering this information, the price range between $64,000 and $66,000 could serve as a significant barrier in Bitcoin’s upward trajectory.

Looking at a positive perspective, since those holding Bitcoin temporarily are closing their losses and switching to profits, it’s probable that this cryptocurrency will appeal to fresh investors, potentially igniting another bull market surging beyond $70,000.

BTC Price Analysis: Why $66K Level Is Important To BTC

Over the past few days, Bitcoin ETFs have seen a surge in investments, with $39.42 million pouring in just yesterday (August 21), according to SoSoValue data. In the last five trading days, these inflows have been steady and amounted to a total of $236.58 million. This suggests that investors are becoming more optimistic about Bitcoin’s price reaching above $70,000 and potentially hitting new all-time highs, indicating a return of confidence in the cryptocurrency market.

BTC Price Analysis: Why $66K Level Is Important To BTC

Bitcoin Price Analysis: Nurturing Triangle Breakout

The ongoing recovery started after Bitcoin price collected liquidity from $58,000 support earlier this week. This action coincided with reinforcing a buy signal from the Moving Average Convergence Divergence (MACD).

Currently, Bitcoin is trading at approximately $60,560, and there’s a good possibility that we might see a breakout in an ascending triangle formation. This pattern emerged as investors attempted to bounce back from the sudden drop below $50,000, but the significant resistance levels at $61,500 and $62,000 have so far prevented further upward movement.

Under current market trends, it’s likely that Bitcoin could surge beyond its previously stated range of $64,000 to $66,000 if there’s a significant upward momentum. Traders should watch for a move above the current levels as this could lead to a 13% increase, reaching $69,700. To manage risks, it’s wise to set a stop loss just below the resistance level.

BTC Price Analysis: Why $66K Level Is Important To BTC

Earlier predictions about Bitcoin’s price suggest that it may not have fully recovered, as a potential drop to around $58,000 is still possible. If the Moving Average Convergence Divergence (MACD) indicates a selling signal, many traders might decide to sell Bitcoin. A surge in selling activity could push Bitcoin below its trend line and the support at $58,000, potentially causing it to fall further to $56,000.

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2024-08-22 18:47