Bitcoin (BTC) set a new minimum BTC price target this week, but achieving it doesn’t mean the bulls have completely lost their pressure.
Popular trader and analyst Rekt Capital recently said in an article published on X that Bitcoin’s next weekly close should hit $59,000.
BTC price faces undefeated resistance barrier
Bitcoin is trying its best to recover after falling to a six-month low of $49,500 this week, but it could easily be taken back by bears.
Rekt Capital analyzed the long-term picture for BTC/USD and identified the possibility of a continued rebound in the BTC price, maintaining the same level as the move since the all-time high in March.
“It happened,” he wrote, noting that Bitcoin reversed course as targeted.
“Bitcoin now needs a weekly close above ~$59,110 later this week to successfully reclaim the black channel bottom as part of an effort to confirm a return to the pattern.”
But there are problems with that pattern too.
As Cointelegraph reported, since the March record, BTC/USD has recorded a series of lower highs and lower lows, compounded by resistance above $70,000.
Looking further afield, another anonymous trader sees additional problems with Bitcoin market strength.
X Account HTL-NL highlighted the Relative Strength Index (RSI) levels on the monthly timeframe, warning that a series of lower highs are causing price discovery opportunities to disappear.
“Warning: Technically, it looks like we’ve already had a cycle peak. Not only that, we’ve had a bigger cycle peak,” the dedicated thread from August 6 reads.
“That means a lot of the elasticity has been lost in the PA. You can see this by the RSI decreasing at each high.”
Hayes Links Liquidity Movement to Bitcoin Bullishness
This view contrasts with expectations that global macroeconomic changes will lead to a broader return to cryptocurrencies and risky assets.
Related: Bitcoin Needs ‘Early $40K’ to Enter Bull Market — 10x Research
According to the theory, this would mean a global resurgence of quantitative easing, with central banks pumping liquidity into markets.
In a recent blog post on the topic, Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, concluded that the US is likely to start adding liquidity in the coming days.
“Bottom line: Bad Gurl Yellen will invest between $301 billion and $1.05 trillion between now and the end of the year,” he predicted in the characteristically sly tone he uses when referring to U.S. Treasury Secretary Janet Yellen.
Hayes added that in the short term, bitcoin’s performance will depend on its interactions with the U.S. dollar and Japanese yen after the yen carry trade unwinds.
As of this writing, BTC/USD was trading around $57,500 before Wall Street opened on August 7, according to data from Cointelegraph Markets Pro and TradingView.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.