After a tumultuous week in the market, Bitcoin has demonstrated its resilience by bouncing back from a dip to $49,000, once again surpassing the $60,000 milestone. This recovery signifies its potential to regain levels lost during the significant 20% correction on August 5.
Despite encountering various obstacles, Bitcoin continues to show signs of maintaining the macro uptrend that has characterized its performance since the beginning of the year. In a recent analysis, crypto analyst Doctor Profit discussed the implications of Bitcoin’s price action and technical outlook, providing insights into the current market sentiment.
Doctor Profit highlighted that major institutional players, such as BlackRock and Fidelity, exhibited confidence by retaining their positions in the Bitcoin ETF market and increasing their BTC holdings. This confidence was mirrored in the steady inflows and outflows within ETF activities, indicating a steady investor base unaffected by last week’s correction.
A notable observation in Doctor Profit’s analysis was the activity of large holders, or “whales,” in the market. These entities accumulated 400,000 BTC over 30 days, representing 2% of the total Bitcoin supply. They took advantage of the dip, demonstrating a strategic approach by buying more during the market’s downturn on Monday.
Regarding price action and technical analysis, Doctor Profit emphasized the significance of Bitcoin’s price range throughout the year. The analyst identified price dips between $60,000 and $50,000 as “golden buying opportunities,” with declines below this range providing favorable conditions for asset accumulation.
Looking forward, Doctor Profit maintains that the $69,000-$70,000 diagonal resistance remains Bitcoin’s primary target. Despite potential challenges from the 50-day exponential moving average (EMA) and 200-day moving average (MA) resistances between $60,000 and $62,000, the analyst is optimistic about overcoming these barriers soon. However, the likelihood of a brief pullback to the $54,000-$55,000 range is anticipated, seen as a temporary adjustment that could remove weaker participants from the market.
This week could see increased market activity, driven by significant economic data releases such as the producer price index (PPI) and consumer price index (CPI) numbers, which are expected to introduce volatility. Doctor Profit suggests that these developments might set the stage for considerable movements and potentially influence future interest rate decisions by the US Federal Reserve in September. The analyst speculates that inflation data could surpass expectations, possibly leading to rate adjustments at the upcoming Federal Open Market Committee (FOMC) meeting.
As of now, Bitcoin’s price has briefly dipped below the $60,000 mark, losing over 1% in the past 24 hours, with its current trading price at $59,450.
