The native cryptocurrency’s rally may lose momentum at key technical resistance levels!
Do you think btcusd is about to enter a downtrend?
We take our signals from the daily chart:
Bitcoin (BTC/USD) Daily Chart by TradingView
August has been a very good month for Bitcoin so far, with the BTC/USD pair jumping from the $50,000 level to trade near the $60,000 levels.
Of course, it probably helped the BTC/USD pair that anti-dollar sentiment dominated the markets in anticipation of a Fed rate cut in September.
Remember that directional biases and volatility in market prices are usually driven by fundamental factors. If you haven’t done your homework on Bitcoin and the US Dollar yet, it’s time to take a look at the economic calendar and stay up to date with the daily fundamental news!
How far can BTC/USD go with its momentum?
Oh, maybe not much further than that.
On the other hand, rising US stock prices may impact demand for Bitcoin and limit the gains of the BTC/USD pair.
The BTC/USD pair is also struggling to break the $60,000-$62,000 levels, which are located near the 100 and 200 simple moving averages and the pivot point on the daily chart. More importantly, Bitcoin’s current levels are not far from the descending channel resistance that has been in place since March.
Watch for bearish candles and sustained trading below $62,000, which could attract sellers and drag BTC/USD to the previous support level at $57,000 or the middle channel area near the S1 pivot point line ($55,436).
However, if BTC/USD manages to hold above $60,000 and regain fresh bullish momentum, the pair could once again test the $64,000 resistance level. Bitcoin bulls could attempt to reach the previous high of $68,000, which could lead to a bullish wave that could push BTC/USD to $70,000.
What do you think? Can BTC/USD maintain its upward momentum this month?