Bitcoin needs $59.1K weekly close amid doubt over BTC price all-time high
2024.08.07 07:49
Bitcoin (BTC) has a new minimum BTC price target for the week — but hitting it does not take all the pressure off bulls.
In his latest X coverage, popular trader and analyst Rekt Capital said that Bitcoin’s next weekly close must hit $59,000.
BTC price faces undefeated resistance hurdles
Bitcoin is doing its best to recover from a trip to six-month lows of $49,500 this week, but bears could easily reclaim control.
Analyzing the long-timeframe landscape on BTC/USD, Rekt Capital identified the potential for an enduring BTC price bounce, which would keep it in line with behavior since March’s all-time high.
“It has happened,” he wrote, referring to Bitcoin reversing upward right on target.
“Now, Bitcoin will need to Weekly Close above ~$59110 later this week to perform a successful reclaim of the bottom of the black channel as support in an effort confirm a return into the pattern.”
BTC/USD chart. Source: Rekt Capital/X
That pattern, however, has problems of its own.
As Cointelegraph reported, since the March record, BTC/USD has delivered a succession of lower highs and lower lows as resistance compounds at $70,000 and above.
Zooming even further out, another pseudonymous trader sees additional problems with Bitcoin market strength.
Highlighting relative strength index (RSI) levels on monthly timeframes, X account HTL-NL warned that a succession of lower highs is wearing away at the chances of a return to price discovery.
“Word of warning: technically this looks like we had the cycle top already and not only that: we also had the bigger cycle top,” it wrote in a dedicated thread on Aug. 6.
“Meaning a lot of the elasticity had gone out of the PA. You can see that from the decreasing RSI at each high.”
BTC/USD 1-month chart with RSI data. Source: TradingView
Hayes links liquidity moves to Bitcoin optimism
That perspective contrasts with hopes that global macroeconomic changes will enable a broad crypto and risk-asset comeback.
Related: Bitcoin needs ‘low $40,000s’ for best bull market entry — 10x Research
This, the theory argues, involves a return to quantitative easing worldwide, which would see central banks flood the markets with liquidity.
In his latest blog post on the subject, Arthur Hayes, former CEO of crypto exchange BitMEX, concluded that the United States would likely begin adding liquidity within days.
“TL;DR: Bad Gurl Yellen will inject $301bn to $1.05tn between now and year-end,” he predicted in a characteristic tone used to refer to US Treasury Secretary Janet Yellen.
Hayes added that Bitcoin’s performance in the near term would depend on the interplay with the US dollar and Japanese yen pair following the unwinding of the yen carry trade.
BTC/USD traded at around $57,500 at the time of writing on Aug. 7 ahead of the day’s Wall Street open, per data from Cointelegraph Markets Pro and TradingView.
BTC/USD 1-hour chart. Source: TradingView
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.
