Bitcoin (BTC) recovered $64,000 for the weekly close on August 25, as analysts warned that the BTC price rally could soon be over.
BTC price is struggling to maintain its upward trend.
BTC/USD was flat over the weekend after a sharp rally at the end of the previous Wall Street trading session, according to data from Cointelegraph Markets Pro and TradingView.
This follows positive signals from the US Federal Reserve in September that it would ease policy, particularly cutting interest rates for the first time since 2019.
Bitcoin was initially slow to react, but ultimately fell after hitting a two-week high of around $65,000.
However, popular trader CrypNuevo took a cautious approach as he analyzed potential moves over the next few days.
He stated in a thread he posted on X that he believes there is a high chance that the order book liquidity will drop to support, which will help liquidate long positions.
“More liquidations are at $63.5k (1-hour 50-minute EMA) and $62.2k,” he summarized, referring to the 50-period EMA on the 1-hour chart.
Therefore, BTC/USD could print a classic “Bart Simpson” pattern as it heads back towards the 50-period EMA on the 1-hour and 4-hour timeframes.
“It would make sense because they would fill the wick, stop short positions and trap breakout traders,” he explained.
“Then the decline will wash out the delta liquidation into a long squeeze, securing support.”
Other popular social media traders agreed with this sentiment, including trader ELM, who saw the price drop to $62,700 before continuing the uptrend.
“Buying a “clean retest” like 62.7K after a BTC pump has a very low hit rate historically,” fellow trader Crypto Chase countered that day.
“When BTC is ready to rip, it rarely provides a clean retest.”
Crypto Chase suggested that a break above $65,700 would provide clearer signs of bullish momentum, but conversely, a drop to $60,000 would warrant careful monitoring.
He wrote along with an explanatory chart: “Watch how PA reacts when 60K-61K is retested (to decide if I should go long for another test of daily resistance 65K or go short for 57.5K~)”
Analyst: Bitcoin Seeks Return to Baseline After Halving
Taking a closer look, trader and analyst Rekt Capital has an optimistic view on BTC price performance.
Related: Price Analysis 8/23: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
He noted that Bitcoin is close to reclaiming the territory it previously occupied after the April block subsidy halving, which he called the “post-halving reaccumulation range.”
“The significance of this technological event cannot be underestimated,” he argued.
“Basically, Bitcoin is historically resynchronizing with price trends following halvings.”
The attached chart compares the price performance following this year’s halving to the price performance following the previous halving in 2020.
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.