Buckle up for a wild ride on the crypto rollercoaster! Bitcoin flirted with the tantalizing $30,000 mark before staging a strategic retreat, all in the wake of lower-than-anticipated CPI data.
This dramatic twist has left market watchers on the edge of their seats, speculating on BTC’s next move. Stick around as we dive deep into this exhilarating saga of highs and lows.
Previous Bitcoin Analysis
In the chart from the previous week, BTC was expected to touch the lower up-trending line before testing the ceiling of the ascending triangle. There would have been no more room for consolidation in a few days, and Bitcoin had to make a decision.
On Monday, August 7, 2023, BTC began its slow ascent up from a local low of $28,671. Over the next 24 hrs, the asset rallied to a high of $30,210 where it met with a zone of high supply and sell pressure.
Smart Money hunted the liquidity at this zone and liquidated several hundred million dollars worth of Shorts, before pushing the price down. The price of Bitcoin currently sits at $29,406 (Friday, August 11, 2023, 5:52 AM UTC).
This price action which began on the very first day of August sent BTC into a consolidation phase.
Bitcoin Price Next Week
Depending on which side BTC breaks out of this range, it can either test $31,150 or $28,100. If it tests the upper side of the ascending triangle, it might get rejected and still return to the $29k range. However, if it breaks through, the sky’s the limit for BTC.
If the price breaks down to $28k from this range, then we expect a bounce from the up-trend line and a rally toward the $31,150 level. If for some reason (like a black swan event) BTC fails to hold the up-trend line, it would spell doom for the entire crypto market because the asset could easily fall to $15,000.
CPI data dropped yesterday at 3.2%, lower than expected. The market reacted positively, and Bitcoin even rose a little (+0.81%) from $29,464 to $29,705. However, these gains were quickly erased as the asset plummeted sharply within the next hour as investors rushed to sell the news.
For the short-term traders, last week’s call was a success, although it took three days to hit the target. This week, investors might want to Short BTC (with safe leverage) from the current price to around $28,600. This is a 50.54% profit using 25X leverage.
It’s important to remember that all crypto prices are highly unpredictable and volatile. So, while some traders may do well by chasing price movements, others could find themselves with deep losses.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make investment decisions based solely on what you read here.