Bitcoin in a Bull Flag: A Break above $63,000 Will Be Massive

Dalmas Ngetich•Friday, August 16, 2024•2 min read

Bitcoin slid yesterday, slipping into the lower limit of the support zone. What’s needed for the uptrend to be questioned is for prices to break $57,000 and June 2024 lows. If that’s the case, the probability of Bitcoin dipping into August lows, preferably if trading volume rises, will be high. As it is, the uptrend remains, at least as long as prices stay inside the August 8 trade range. However, there must be more convincing, requiring a solid break above $63,000.

The events of the past day mean Bitcoin is in red, losing 4% in the previous week. Now that the coin is swinging lower, the broader markets remain under significant selling pressure. The dip visible in the past day is why trading volume is also lower, dropping to around $34 billion. For now, conservative traders can wait on the sidelines, aware that any expansion above August 8 highs may trigger more buying.

Bitcoin Daily Chart for August 16

Traders are also tracking the following Bitcoin news:

Even as prices print lower lows, apparent in the daily chart, on-chain data shows that HODLers are accumulating, loading the dips. Presently, there are signals that the coin could be undervalued.
The recent transfer of 10,000 BTC to a custodian by the United States government did spook the market. Nonetheless, analysts are convinced even if they were to sell, the amount would easily have been absorbed by the markets.

Bitcoin Price Analysis

BTC/USD is edging lower at press time.

While the horizontal consolidation is clear, buyers must break higher to confirm the bull bar of August 8.

Presently, the coin is within a bullish formation and inside a bull flag. Notice that the sideways movement means bulls have a chance from an effort-versus-result perspective.

A break out above $63,000 will likely trigger demand, subsequently lifting Bitcoin to $70,000.

Conversely, if sellers press on, aligning price action with sellers of August 4 and 5, BTC might drop below August lows. In that case, the probability of a bear trend continuation to $40,000 will be highly likely.

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