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As of August 31, 2024, Bitcoin is trading at $59,189.30, experiencing a slight dip of 0.14% in the past 24 hours and a bigger 7.66% decline over the last 7 days. Despite this short-term pullback, it maintains a market capitalization of $1.17 trillion. The 24-hour trading volume stands at $29.1 billion, down by 11.09%.
Technical analysis suggests that Bitcoin is at consolidation phase.It is currently trading within a bullish flag pattern with the next resistance level at around $68K. A break and close above this level could signal a continuation of the bullish trend and potentially trigger a substantial rally.
After recently dropping below the psychological $60K mark, Bitcoin found support at the $58K level. This support coincides with a retest of a smaller bullish flag pattern formed within the larger flag formation. In the near term, traders are eyeing the $61,500 resistance zone which served as a breakdown point following a sell-off a few days ago. A successful breach of this level could push BTC towards the recent high of $65,500, before trying to challenge the main bullish flag resistance at $68K.
The MACD indicator currently shows a bearish, with the MACD line below the signal line. However, we are closely watching for a potential bullish crossover, which could indicate a shift in momentum. The RSI sits at 45 reflecting the recent selling pressure but also suggesting that the asset is not yet oversold.
A recent tweet has shown similarities between the current market structure and Bitcoin's behavior in 2017 when it surged massively from approximately $2,000 to $20,000 after a breakout from a widening wedge. This comparison has led to speculation about the possibility of Bitcoin reaching $100K and beyond once it breaks out of its current consolidation phase.
The optimism surrounding BTC potential is further fueled by the evolving landscape of cryptocurrency adoption. Unlike previous bull cycles, the current market sees increased participation from countries, corporations and ETFs incorporating Bitcoin into their strategic reserves. Notably, retail investors have yet to enter the market, suggesting that a bull phase for BTC and altcoins awaits.
On-chain data from Santimentfeed as reported by analyst Ali Martinez, indicates substantial buying activity during the recent dip. Over the past 48 hours exchange supply decreased by 40,000 BTC, equivalent to roughly $2.40 billion. This coincides with a notable increase in exchange outflows, potentially signaling accumulation by large investors.
Other bullish indicators for Bitcoin include the recent golden cross formation and the emergence of a cup and handle pattern on the charts. These technical setups have historically been associated with positive price action.
All eyes are on Bitcoin's next move. A breakout from the current consolidation phase could not only push Bitcoin to new heights but also ignite a rally across the broader altcoin market.
