Bitcoin Needs to Reach Higher High to Confirm Uptrend After Falling Below $58K

September 02, 2024 04:00 PM AEST | By Team Kalkine Media

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Bitcoin Needs to Reach Higher High to Confirm Uptrend After Falling Below $58K — Image source: shutterstock

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Bitcoin's price must avoid dropping below $56,000 to maintain its longer-term upward trend, according to crypto Matthew Hyland. Hyland emphasized the importance of Bitcoin establishing a bullish "higher high" on its price chart to confirm the continuation of the current uptrend, which has been in place since August.

Hyland noted that Bitcoin needs to stay above the $57,700 level. Should {Bitcoin} (BTC) fall below this threshold, it must hold the $56,000 level to prevent a lower low, which would signal a potential shift in the uptrend. If Bitcoin were to break below this key support level, it could indicate a weakening of the current bullish momentum.

Some traders, however, believe that Bitcoin may need to experience a deeper correction before resuming its uptrend. Markus Thielen, head of Research at 10x Research, suggested on August 7 that market participants might wait for Bitcoin’s price to dip into the low $40,000s to optimally position themselves for the next bull market phase.

At the time of publication, Bitcoin was trading around $59,218, recovering from a recent low of $57,925, according to CoinMarketCap data. Over the past week, Bitcoin has decreased by 7.69%.

Hyland observed that Bitcoin has shown a pattern of higher lows and higher highs since early August, with notable pullbacks at the beginning of both July and August. He anticipates continued market fluctuations leading up to the United States presidential election on November 5.

Recent reports indicate that Bitcoin’s price movement in September may differ from past trends. Bitcoin miner selling pressure has stabilized, and the stablecoin supply ratio shows positive indications. Additionally, pseudonymous crypto trader Jelle suggested that a multiyear chart pattern, known as the cup and handle, could indicate a potential rise to six-figure levels, aligning with ongoing market speculation.

This pattern, observed from May 2020 to August 2024, reinforces the possibility of a significant upward movement, although the exact timing remains uncertain.

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