Bitcoin's August Rebound: Bullish Surge or Bearish Trap?
By
Azeez Mustapha
PUBLISHED:
09 Sep 2024 @ 08:24
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More info about Azeez Mustapha
On August 5th, Bitcoin’s price bounced back from the demand zone at $52,984.0, sparking a bullish reversal. The ensuing rally filled the fair value gap, an inefficiency left by the sharp price drop to the demand zone. However, this upward momentum hit a roadblock as a bearish order block halted further gains, triggering a reversal. Small indecision candles formed on August 24th and 25th, signaling a pause in the uptrend and a potential change in sentiment. The bullish order block (OB) established on August 22nd failed to sustain support, resulting in a shift in market structure.
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Key BTCUSD Levels to Watch
- Demand Zones: $52,984.0, $46,526.0, $38,420.0
- Supply Zones: $62,233.0, $69,293.0, $100,000.0
Technical Indicators Analysis
- The Lorentizan Classification indicator triggered a sell signal during Bitcoin’s last test of the supply zone at $69,293.0, leading to a drop back to the demand zone at $52,984.0.
- The Williams Percent Range shows Bitcoin is currently oversold at the demand zone, hinting at a potential price reversal and a new upward movement towards $69,293.0.
Range traders can take advantage of these market dynamics, but lower-risk strategies and shorter-distance targets are recommended to mitigate potential risks. Bitcoin’s next move could reveal whether the bulls can reclaim dominance or if further bearish pressure awaits.
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