As August kicked off, Bitcoin (BTC) experienced a week of volatility, with its price struggling around the $29.1k mark. Despite strong efforts from bullish traders to defend their position, the altcoin market failed to capitalize on Bitcoin’s momentary weakness, leading to a bearish sentiment among experts about the overall crypto landscape.
Crypto traders are being urged to keep a close eye on the high-impact news scheduled for Thursday and Friday. Among these events are the Consumer Price Index (CPI) and Core Producer Price Index (Core PPI), which are expected to significantly influence the statements to come from the Federal Open Market Committee (FOMC).
Bitcoin Price Analysis
Doctor Profit, a renowned crypto trader with a massive following of over 186k followers, recently conducted a technical analysis shedding light on Bitcoin’s potential price trajectory. According to the analysis, Bitcoin seems poised for a decline towards the $24k mark in the coming weeks or months.
Doctor Profit issued a word of caution to traders engaging in short positions, emphasizing the importance of the daily Exponential Moving Average 50 (EMA50) as a critical determinant of future price action. The EMA50 currently acts as a strong resistance level. If bullish forces manage to breach and maintain momentum above the daily EMA50, a potential rally towards $32k might be in store.
Here’s an Interesting Strategy
Doctor Profit outlined his current strategy.
“If the market facilitate a breakout beyond the EMA50 and secure a foothold above $32,000, I will consider re-entering short positions. For now, I intend to adhere to a straightforward approach: maintaining existing short positions in the $31-30k range and realizing profits exclusively upon the restoration of the daily EMA50.”
The analyst presented two plausible scenarios for Bitcoin’s future price movement. The first scenario involves an ongoing correction, pushing Bitcoin’s price towards the $24k threshold. The alternative scenario envisions a price surge to $32k, followed by a severe capitulation event that drives the price back to the $24k target.
Read More: Report: Bitcoin’s Year-to-Date Growth – Is a $125,000 BTC Price Target Within Reach?
What do you think of Bitcoin’s future price movement? Do you agree with Doctor Profit’s analysis?