Following a significant surge of over 7% on August 23, 2024, the Bitcoin (BTC) price has been consolidating in a narrow range. A crypto expert recently shared on X (formerly Twitter) that if the Bitcoin price reaches the $61,500 level, it could present an excellent buying opportunity to capitalize on the dip.
The expert’s post on X was influenced by the recent breakout from the bullish ascending triangle pattern. Since the breakout, Bitcoin has yet to retest the $61,500 level. If a retest occurs, there is a strong likelihood that the price could experience significant growth in the upcoming days.
Technical analysis suggests that BTC is in a bullish trend as it is currently trading above the 200 Exponential Moving Average (EMA) on a daily timeframe. The price has been consolidating between $63,500 and $64,500 levels for the past three days. If Bitcoin drops below $63,500, it may see a 2.5% decrease and retest the breakout level. On the other hand, breaking the $64,500 level could lead to a 5% increase towards $67,500.
Buying Bitcoin at the retest level could provide a better entry price, tighter stop-loss, and increased chances of a successful breakout.
Market sentiment shows stability in BTC’s open interest over the past 24 hours, with no significant increase in interest from traders and investors. Short-term sentiment appears bearish, with more short positions compared to long positions. The major liquidation levels are around $63,390 and $64,890, according to CoinGlass data.
If the sentiment turns bearish and the price drops to $63,390, approximately $117 million worth of long positions could be liquidated. Conversely, a bullish sentiment leading to a price rise to $64,890 could result in liquidating nearly $516 million worth of long positions.
Currently, BTC is trading near $63,580 with a 1% price drop in the last 24 hours. The trading volume has increased by 20%, indicating higher trader participation.
Source: Trading View
Overall, the analysis suggests potential price movements and opportunities for traders to consider in the Bitcoin market.
