The leading cryptocurrency, Bitcoin (BTC), was priced at $59,182 on the morning of Wednesday, August 21, 2024, marking a 1.7 percent drop within 24 hours, according to data from Coingecko. This decline comes after Bitcoin showed promising growth throughout Tuesday, August 20, 2024, hovering around the $60,000 mark.
Top analyst Michael van de Poppe shared his insights on this market movement. In a post on social media platform X, he emphasized that the $56,000 level is a critical support point.
#Bitcoin held a crucial level at $56K and continued upward.
— Michaël van de Poppe (@CryptoMichNL) August 20, 2024
It's been a great start to the week, as the price of Bitcoin is acting above $60K. However, there has been no breakout.
The next big hurdle is a breakout through $61-62K, as that would automatically mean that Bitcoin's… pic.twitter.com/t5F4VjQfTF
“If Bitcoin manages to reach $60,000, the next challenges will be breaking through the $61,000 and $62,000 levels,” Poppe stated.
He further noted that a breakthrough beyond these levels could push Bitcoin to even higher levels, potentially revisiting its all-time high (ATH). However, Poppe also acknowledged the historical challenges that August typically presents for Bitcoin.
Despite the current downturn, Poppe added that there are signs the recent price correction might be coming to an end.
“With the holiday season ending, market activity is expected to pick up. This could help boost Bitcoin’s price,” Poppe said.
Meanwhile, as reported by decrypt.co, Bitcoin is showing signs of breaking out of a prolonged consolidation phase. The price range in question is between $57,000 and $68,000.
Axel Adler Jr., an analyst from CryptoQuant, noted a recent increase in transaction volume. Although much of this volume stemmed from ‘panic selling,’ it did not result in a significant price drop.
During the most recent drop to the $50K level, the quarterly change in the volume of transferred coins increased to 7%. This has been the largest growth since the beginning of the bull cycle.
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 21, 2024
The price drop stimulated an increase in transaction volume. pic.twitter.com/fMXTe9qg62
“The stability of Bitcoin’s price amidst rising transaction volumes suggests that investors view the current price range as a good buying opportunity,” Adler commented.
While there is potential for Bitcoin to dip back to the $50,000 level, Adler believes this drop will likely be followed by a surge in buying, similar to what was observed earlier in August.
To stem panic, the market has received about $150B in cash which participants are using to buy the dip, last seen on August 3rd at the $50K level.
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 20, 2024
This has been happening for the last four years and it's unlikely anything will change. pic.twitter.com/DHsEooWNDb
“Bitcoin’s price is influenced not only by direct market demand but also by liquidity in the futures market. If the price falls back to $50,000, it’s highly likely that Bitcoin will be bought back, as we saw in early August,” Adler concluded.