Bitcoin Price Prediction: Why BTC Failed to Reach $65k in August 2024

Bitcoin Price Analysis

Bitcoin’s price is currently struggling to maintain momentum after a recent attempt to break through the $61,000 level failed. As of August 22, 2024, Bitcoin (BTC) has slipped back to around $60,025, reflecting a dip from its 24-hour high of $61,158, which represents a roughly 2% decline.

The market appears to be entering a consolidation phase after the price surge earlier this month, with significant selling pressure emerging at key resistance levels.

Bitcoin’s 6% Correction in the Face of Volatile Market Conditions

Following a strong rally that saw BTC rise by 35% between August 5 and August 16, Bitcoin has experienced a notable correction. Recent market trends shows how Bitcoin attempted to reclaim the $61,000 mark on August 21, only to be met with selling pressure at $61,227.

Over the past week, Bitcoin price has fluctuated within a narrow range, between $58,000 and $62,000, signaling a consolidation phase after the previous gains. The current price of $60,025 suggests a correction of around 6% from its recent high, raising concerns about the sustainability of the bullish momentum.

The ongoing uncertainty in the broader financial markets has also contributed to this correction. Despite the positive sentiment surrounding the potential rate cut by the US Federal Reserve in September, external factors such as large-scale Bitcoin sales by FTX creditors and the US government have increased market volatility. This selling activity has weighed on Bitcoin’s price, preventing it from breaking out of the current consolidation phase around $60,000.

Short-teerm Traders Add $50 Million in Selling Pressure

According to the latest data from IntoTheBlock, the imbalance between buy and sell orders is a key factor influencing Bitcoin’s price action.

The Exchange Market Depth chart reveals that the total number of sell orders for Bitcoin has surged to 53,000 BTC, outpacing buy orders, which stand at 47,000 BTC. This imbalance of approximately 6,000 BTC, at an average price of $60,967, translates to an estimated $50 million in sell pressure.

This selling pressure is evident in the significant volume of orders from major exchanges like Binance, which accounts for a substantial portion of the total sell orders.

As a result, the market is struggling to gain the momentum needed for a sustained rally, with sellers regaining control after the recent price surge. The excess supply, combined with a shortfall in demand, has created a bearish headwind, making it increasingly difficult for Bitcoin to break through the $62,000 resistance level.

Bitcoin Technical Analysis: $62,000 Remains a Major Hurdle

From a technical perspective, Bitcoin’s current price action is facing significant resistance at $62,000.

The BTCUSD daily chart shows that Bitcoin has been trading below the middle Keltner Channel band, which is acting as dynamic resistance. The RSI Divergence Indicator also indicates a bearish divergence, with the RSI hovering around 51.57, suggesting that the upward momentum is weakening.

If Bitcoin fails to hold above the key support level of $59,000, it could face further downside risk, with the next significant support around $54,565. This level aligns with the lower Keltner Channel band and could act as a potential floor for any further declines. However, a successful break above the $62,000 resistance would be crucial for any bullish continuation. Given the current market conditions, the likelihood of such a breakout appears limited, and Bitcoin may continue to face downward pressure in the near term.

In conclusion, while Bitcoin has shown resilience in recent weeks, the current market dynamics suggest that it may struggle to reach the $65,000 level in the immediate future.

The significant selling pressure and technical resistance at $62,000 could keep Bitcoin’s price in check, leading to further consolidation or even a potential correction before any substantial recovery occurs. Traders should closely monitor key support and resistance levels as Bitcoin navigates through this challenging phase.