Last week saw Bitcoin through another major decline but after a lot of indecisiveness around a key level, it finally broke lower and closed the week strongly bearish. It currently looks ready for a bigger fall.
We recall that August started painful for Bitcoin after falling from $70k in the preceding month but things later turned out positive for the giant cryptocurrency as it recovered well from a six-month low – $49k.
It managed to tap the $65k range in the late month but later lost grip after twice rejections. The price dumped to $58k and briefly jumped to the key $60k level, where it remained calm for the rest of that month.
Yesterday, being a weekend and the first day in September, the price broke down near $57k and closed strongly bearish. Although it has increased a bit today and now changes hands at $57.6k at the time of writing.
Considering yesterday’s closing from a technical standpoint, Bitcoin is expected to chart bigger losses in the next few days, and from the look of things, the $45k level will likely be the next stop in this leg down.
Bitcoin’s falling broadening wedge pattern is still very much intact on the daily timeframe. A break out from this wedge would determine its next direction.
BTC’s Key Levels To Watch
Source: Tradingview
The closest level for drops right now is $56,078, followed by July’s $53,486 low. Below this level lies $51k (February’s low) and $49,000 – marked as a six-month low in August.
Following the past week’s fall, Bitcoin’s minor resistance is now held at $61,190. Last month’s $65,065 high is considered a major resistance. $67k, $68.5 and $70k are higher levels to watch in case of bounce back.
Key Resistance Levels: $61,190, $65,065, $68,500
Key Support Levels: $56,078, $53,486, $49,000
- Spot Price: $57,641
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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