BTC price chart shows Bitcoin can match $49.5K lows within days
2024.08.06 10:10
Bitcoin (BTC) risks another trip below $50,000 after a giant daily candle wick spooks analysis.
In his latest X coverage, popular trader CrypNuevo warned that recent BTC price volatility may end up in Bitcoin matching six-month lows.
BTC price history shows wicks “filled” in days
Bitcoin has managed to bounce more than $5,000 versus its $49,500 bottom seen on Aug. 5.
Consensus is yet to form over where BTC/USD could be headed next, however, and opinions are diverging as the dust continues to settle on a grim day’s losses.
For CrypNuevo, there is cause for concern. Historically, he noted, large wicks generated by volatility tend not to wait long before price returns to “fill” them, matching the lows.
Uploading an explanatory chart, he showed that it is often a matter of days before such a process plays out.
“I’ve marked in this chart all the long wicks applicable to the wick-fill strategy since March to put things into perspective,” part of accompanying commentary added.
“We don’t know when exactly this new long wick will get filled, but it should get filled sooner or later.”
BTC/USDT 1-day chart with wick-fill data. Source: CrypNuevo/X
Another post noted a curious element of the BTC price rebound. The bounce, CrypNuevo acknowledged, had come at a key level.
“We bounced from EXACTLY the 50% level of a previous long wick,” he concluded.
BTC/USDT 1-day chart. Source: CrypNuevo/X
Analysis: “Possibly time” to consider Bitcoin, Ether buys
Other market participants gingerly floated the idea of a bottom having already formed for both Bitcoin and largest altcoin Ether (ETH).
Related: Bitcoin speculators realize $850M losses in sub-$50K BTC price dump
Among them was trading firm QCP Capital, which flagged a giant leverage flush as a cathartic event for bulls.
“Yesterday’s risk-off rout flushed out a decent chunk of leverage,” it wrote in its latest bulletin to Telegram channel subscribers.
“With prices having fallen off a cliff, it is possibly time to start thinking about accumulating BTC and ETH spot.”
QCP was also optimistic on macroeconomic moves going forward. The United States Federal Reserve, it argued, was unlikely to enact an emergency interest rate cut, inducing extra market panic in the process.
“Asset prices are likely to stay volatile and markets remain choppy until clarity on Fed and BoJ policy is provided, with key updates expected from BoJ Deputy Governor Uchida on Wednesday and the Fed’s Jackson Hole conference from August 22-24,” it stated, referring to upcoming cues from both the Fed and the Bank of Japan.
BTC/USD traded at around $55,000 at the Aug. 6 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.
