Bitcoin analysis warns BTC price risks 2023 rerun when stocks shed 10%
2024.08.30 12:01
Bitcoin (BTC) stayed rangebound at the Aug. 30 Wall Street open as traders began to compare BTC price action to its 2023 breakdown.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin ignores latest US PCE inflation print
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD acting around $59,500.
The latest United States macroeconomic data in the form of the Personal Consumption Expenditures (PCE) Index did little to shift the sideways landscape.
This came in slightly below expectations, further bolstering the case for already anticipated interest rate cuts to begin in September.
Source: The Kobeissi Letter
The latest estimates from CME Group’s FedWatch Tool showed market odds on the size of the first rate cut broadly unchanged after the PCE print.
Fed target rate probabilities. Source: CME Group
Pinned right below $60,0000, however, Bitcoin offered little inspiration to traders hoping for even a modest reclaim of lost support.
In his latest video update on X, popular trader Crypto Ed joined those highlighting $62,000 as the key resistance/ support flip required by bulls.
“$62,000 is my key level. If we break above and reclaim $62,000, I will be a lot more bullish,” he said.
Crypto Ed offered a BTC price fractal from August 2023 as one idea of where the market may be headed in the coming weeks. At the time, BTC/USD put in long-term lows of $25,000 before sharply reversing higher later in Q4.
BTC price fractal (screenshot). Source: Crypto Ed/X
Continuing, trader Josh Rager held similar thoughts, this time due to how US stock markets behaved during the prior Bitcoin breakout in 2020.
“Stocks are almost at all-time highs. That’s exactly what happened last Bitcoin halving year going into September of 2020,” he told X followers.
“Stocks hit new highs late August 2020 and then nuked over -10% in September. Let’s hope for different results in September or $BTC and crypto will feel pain.”
Ichimoku highlights BTC price struggle
More optimistic was fellow trader Titan of Crypto, who in his own update suggested that the Ichimoku Cloud indicator may be the key to short-term strength.
Related: Bitcoin hashprice slump echoes March 2020 BTC price launch zone
“If BTC reclaims $59,600 and breaks through the cloud twist, the clouds would flip from resistance to support,” he wrote alongside an explanatory chart.
“This might trigger an upward move.”
BTC/USDT 1-day cahrt with Ichimoku Cloud data. Source: Titan of Crypto/X
With less than 48 hours to go until the monthly close, Bitcoin was due to finish August down around 8%, having nonetheless recovered by nearly 40% since its $45,500 lows on Aug. 5.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
