Is Bitcoin Heading for Another Price Crash?
Bitcoin’s price has experienced a significant increase of nearly 18.50% subsequent to reaching a six-month low. This development may indicate an imminent correction in the following weeks influenced by technical and onchain indicators.
Based on data analysis, over 80% of Bitcoin’s long-term traders are currently profiting. However, this statistic could serve as a potential indicator of an impending price correction. The percentage of profitable long-term investors has declined from approximately 96% in March to 83% as of August 16.
The ongoing consolidation trend suggests that Bitcoin may face potential downside risks if it continues to linger at its immediate resistance level. A breach below the lower trendline of the triangle could result in the price descending to approximately $50,000, a psychological support level.
Moreover, there exists a bullish outlook as well. A successful closure above the upper trendline could instigate an upward target of around $70,000. This perspective is reinforced by Charles Edwards, the founder of digital asset fund Capriole Investments, who is of the opinion that Bitcoin’s price trajectory is mimicking that of gold, which has already observed an upward breakout.
Additionally, the potential reduction in interest rates by the Federal Reserve could further bolster Bitcoin’s positive outlook by lowering the opportunity cost of holding yielding assets such as US bonds.
It is imperative to emphasize that this article does not purvey any investment advice or recommendations. All investment decisions carry inherent risks, and readers are strongly advised to conduct their own research prior to making any decisions.
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