Bitcoin’s Price Outlook For This Week 📉
Bitcoin (BTC) commenced the weekend with a slightly more positive sentiment after experiencing a predominantly bearish week, with some signs of price recovery. Nonetheless, a technical analyst has issued a caution about the potential for further downside for the leading cryptocurrency when considering the one-hour chart.
Bitcoin’s Key Support Level Analysis 📊
On August 15, a reputable analyst on TradingView, Ben Walther, shared an analysis of Bitcoin and Ethereum (ETH), outlining crucial support levels for both cryptocurrencies. Walther emphasized that BTC’s $58,000 was a critical level to observe, warning of potential downside if breached.
- Bitcoin’s support level briefly broke, leading to a drop to as low as $56,000 before recovering above this level.
BTC Descending Broadening Wedge Analysis 🔍
The following day, the analyst presented another analysis, highlighting a “descending broadening wedge” chart pattern, indicating further downside potential. This pattern is defined by two diverging trendlines and the price forming lower highs and lower lows.
- A descending broadening wedge is typically a bullish sign, but in this scenario, an increasing volume weighted to the sell side suggests a possible breakout to the downside.
- Traders are advised to be cautious and anticipate high short-term volatility in Bitcoin’s price movements.
Hot Take: Proceed With Caution 🚨
As a crypto enthusiast, it’s crucial to monitor BTC’s price fluctuations closely and exercise caution in the current market environment. Stay informed and be prepared for potential volatility in the upcoming days to make well-informed decisions about your cryptocurrency investments.
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