Bitcoin (BTC) Ticker Dips, Stays Above $26,000 Leading into August 20 Weekly Closure Amidst Persistent Negative Price Predictions
Evaluation Suggests Bitcoin Could Present a Fresh “Generational Buying Opportunity”
Information from Cointelegraph Markets Pro and TradingView revealed a unsettling tranquility enveloping the BTC/USD market over the weekend, witnessing an 11% decline in a span of seven days.
Nervous onlookers of the market maintained a high level of caution. Looking forward, Keith Alan, co-founder of monitoring resource Material Indicators, envisioned only a limited potential for improvement.
“In my analysis on August 19, I anticipate that the $25k level will eventually weaken, paving the way for a retest of support at the 2017 Bull Market Top, which sat just below $20k. However, I don’t foresee a direct trajectory to that point,” he concluded.
Alan further stated that such a recovery might even reach the 100-week simple moving average (SMA), currently positioned at $31,368. Should this materialize, it would “exacerbate the impact of the losses experienced this week.”
“In the event of a retest of the $25k mark, my focus shifts to anticipating the emergence of the subsequent series of Lower Lows,” he succinctly explained.
“The initial point would be at $24,749 on Coinbase, followed by $19,567, which notably lies just below a significant R/S (Resistance/Support) reversal zone at the 2017 Bull Market Top. A breach of this level would open the door to a bearish scenario, potentially leading to a ‘bearadise’ scenario and an opportunity that could be perceived as a generational buying moment.”
There was a consensus among others that if the $25,000 level fails to serve as a support, then the prospect of $20,000 resurfacing becomes more likely.
“If the breach beneath $25.3K takes place, it could lead to targeting the $24K – $23K range, prompting a robust buyback response. Otherwise, the trend might continue towards the $20K mark,” shared the popular trader Skew with subscribers of X, as a segment of a post on that day.
Skew did acknowledge, however, that there might be a temporary rebound in intraday BTC price movement around the weekly closure. In this scenario, $28,500 could potentially emerge as a target if buying pressure gains momentum.
BTC price melts through Whale volume
Moderate support levels beneath $25,000 were also identified by the analytics platform Whalemap, which pinpointed historical instances of significant whale buying activity.
Related: What’s behind today’s decline in the cryptocurrency market?
The platform observed substantial clusters of on-chain volume persisting at $23,200 and $21,000.
“In the event of further decline,” it remarked on an illustration of its data shared on X, mentioning that $19,200 and $16,600 represented additional noteworthy levels to monitor.