The leading cryptocurrency reached $59,640 as this article was prepared, and altcoins began to recover weakly. Many metrics indicated a rise compared to the previous month, but global issues and excess supply in crypto had worried investors. However, most of these problems have been resolved.
Bitcoin (BTC)
Cryptocurrency investors endured sales from Germany and Mt Gox. The largest cryptocurrency by market value, BTC, fell last weekend due to global recession concerns. However, the Fed, which mentioned not cutting rates this year, is now compelled to do so due to recent data.
According to K33 Research senior analyst Vetle Lunde, over 262 firms bought BTC ETFs for the first time in the previous quarter. This increase in institutional demand came in a chaotic environment. 44% of asset managers increased their BTC ETF holdings. Bitwise Chief Investment Officer Matt Hougan noted that 22% of current asset managers kept their holdings stable, while 33% either sold completely or reduced their holdings.
The $55,724 support is a key point on the downside for BTC, and if we see closures below it, the price could drop to $50,000. However, if the $61,800 support is reclaimed in the short term, the dip concerns will disappear. Above $63,000, the target will be $70,000 again.
Bitcoin and Crypto Predictions
BTC price performance directly affects the rest of the crypto market. On August 14, the price fell below the SMA50 at $61,557 and bounced from the support at $55,724. Now, it aims to reclaim $60,000. If the SMA50 is reclaimed, we will see a decrease in selling pressure again.
The sign that demand is reviving at higher levels will be possible with closures above $63,000. In this case, the targets will be $65,659 and $70,000. Parabolic rallies for altcoins can be seen while fluctuations continue in this range.
In the opposite scenario, consolidation between the SMA and $55,724 could continue, and with the loss of support, the target could be $49,000 again. For now, the global market recovery is in favor of BTC.
