Why Bitcoin (BTC) Price Could Fail to Reach $65,000 This Week
thecryptobasic.com 21 August 2024 13:51, UTC Bitcoin price has retraced below $59,000 on August 21, following another unsuccessful attempt to advance towards $65,000. The latest data from the order books of 20 crypto exchanges shows that BTC is facing intense selling pressure.
BTC Suffers Another 4% Correction
Bitcoin’s price made a sharp recovery earlier this month, surging 35% between August 5 and August 16. However, recent trends indicate that the market has entered a consolidation phase over the past week, with prices stagnating within a narrow 5% range between $58,000 and $62,000.
As illustrated in the TradingView chart, BTC attempted to reclaim the $62,000 level on August 20, but the rally was repelled at around $61,395. As of August 21, Bitcoin is trading below $59,500, reflecting a 4% correction from the 24-hour high.
The US Federal Reserve’s proposed rate cut in September offers long-term positive sentiment. However, significant selling by the US government and FTX creditors, who have moved large amounts of BTC into exchanges, has triggered increased volatility. This activity has led to Bitcoin’s price being subdued and stuck in a prolonged consolidation around the $60,000 area.
Bitcoin Facing $50 Million Sell Pressure.
A rising number of sell orders has kept Bitcoin’s price rally in check over the past week. Without a fresh bullish catalyst, the existing bearish sentiment could nullify any upward momentum in the coming days.
The Exchange Market Depth data, as shown in the IntoTheBlock chart, reveals that total Bitcoin buy orders amount to approximately 47,000 BTC, while sell orders have surged to 53,000 BTC.
This represents a significant imbalance, with sell orders outweighing buy orders by about 6,000 BTC. At the average price of $59,516, this translates to a sell pressure of roughly $50 million.
This bearish headwind from the order books suggests that sellers, who regained control after the last rally, could obstruct Bitcoin’s advance above $62,000. The ongoing shortfall in demand, coupled with the excess supply, is likely to push Bitcoin into a price correction phase as the week progresses.
BTC Price Forecast: Major Roadblock Looming at $62,000
Technically, the major roadblock for Bitcoin lies at the $62,000 resistance level. The chart reveals that BTC has been trading below the middle Keltner Channel band, which is acting as dynamic resistance. The price action is also struggling to maintain support around $59,302, as indicated by the RSI Divergence Indicator, which is showing a bearish divergence.
If Bitcoin fails to hold above $59,000, the next significant support level is around $54,565, which aligns with the lower Keltner Channel band. On the upside, breaching the $62,000 resistance would be crucial for any bullish continuation. However, given the current market conditions, the likelihood of a breakout appears slim, and Bitcoin could face further downward pressure before any significant recovery occurs.
