Popular crypto analyst Tom Crown made significant evaluations about Bitcoin’s current state and potential future movements in the latest Altcoin Daily broadcast. The analyst also shared important levels and potential targets for the largest cryptocurrency.
Positive Signs and Possible Scenarios for Bitcoin
Bitcoin has been trading around $61,000 in recent days and has managed to hold this level for approximately 160 days. However, after experiencing a 35% rally from August 5th to August 16th, it entered a correction period by giving back these gains.
On August 21st, it tried to retest the $61,000 level but faced strong resistance at $61,227. Over the past week, it has been trading in a narrow range between $58,000 and $62,000. This indicates that the crypto king is in a consolidation phase following recent gains.
Although Bitcoin currently appears to be in a pause phase, Crown expects positive developments for the market’s future. He specifically noted that the dovish stance of the Federal Reserve (Fed) with the expectation of a rate cut in September could provide positive momentum for Bitcoin.
On the other hand, the analyst added that Bitcoin recently experienced a “death cross.” This technical signal occurs when the short-term moving average falls below the long-term moving average and is generally considered a bearish signal for the market. Crown emphasized that this signal has historically triggered price recoveries in Bitcoin, suggesting that it might not be as negative in the current situation.
Important Levels and Potential Movements
Crown is monitoring critical support and resistance levels for Bitcoin’s future direction. According to the analyst, Bitcoin needs to reclaim the $62,800 level and remain above it to resume its upward trend. If this is achieved, the largest cryptocurrency could aim for the $69,000 to $70,000 range. However, if Bitcoin falls below the $49,000 level as it did on August 5th, it could test a lower support level of $38,500. He added that such a decline could be expected to occur alongside significant market events.
Crown stated that in the worst-case scenario, if Bitcoin falls below $49,000, the $38,500 level would emerge as a critical support. This level could become attractive for investors looking for buying opportunities.
On the other hand, if Bitcoin rises above $63,000, it could enter an upward trend towards $70,000. In the best-case scenario, some projections suggest that Bitcoin could reach new all-time highs and even rise to $250,000 in the long term, although these predictions are speculative.
