Bitcoin’s Correction and Selling Pressure Begins to Slow Down
According to various metrics, the correction and selling pressure in Bitcoin (BTC) has started to lose momentum. BTC may soon move towards its all-time high.
During the global market crash on August 5, BTC experienced a drop of over 25%. Many crypto analysts believe this decline may represent a potential bottom point for Bitcoin. Chart data suggests that this drop could be a bear trap, indicating that an all-time high could be seen in 2024.
Divergence in price momentum and other bullish formations signal potential upward movement for BTC. Expectations are leaning towards BTC reaching $74,000.
Bitcoin is Rebounding from Declines
Since July, Bitcoin (BTC) has formed bottom levels. The weekly relative strength index (RSI) on the BTC chart has shown further declines. The divergence between the price level and RSI indicates that the downward momentum is weakening. A countdown has begun for a potential upward reversal.
According to sources, the formation of a bullish flag along with various divergences in BTC suggests that a new record level of $74,000 could be on the horizon in the coming months.
Bitcoin whales are also supporting BTC’s next bull run. These large holders are buying more BTC day by day. Data from Glassnode shows that whales holding at least 1,000 BTC have accumulated the largest amount in the past nine years.
In the past 30 days, whales withdrew 73,350 BTC from exchanges. Market data indicates that these whales are not purchasing this BTC for trading purposes. Instead, they are focusing on long-term return opportunities.
The last time whales accumulated such a large amount was in 2015, when the value of one BTC was approximately $220. Following that accumulation, BTC reached $20,000 in December 2017.
U.S. Data Influences Bitcoin’s Trajectory
Macroeconomic data is signaling bullish trends for Bitcoin (BTC). According to the data, there is a 100% confidence that the U.S. Federal Reserve will lower interest rates in September. A 25 basis point rate cut is anticipated, while a minority group suggests a 50 basis point reduction could be possible.
Expectations for interest rate cuts are keeping BTC strong. The producer and consumer price indices from the U.S. are also of significant importance, as these figures will help predict the Fed’s next policy moves.
On August 13, Tuesday, at 15:30 Turkey time, the U.S. producer price index (PPI) will be released. Expectations indicate that the PPI will remain unchanged at 0.2% from the previous month.
On August 14, Wednesday, at 15:30 Turkey time, the U.S. consumer price index (CPI) will be announced. As one of the key indicators affecting the Fed’s interest rate policy, the CPI is expected to show a rate of 3.0%, the same as the previous month.
