As markets brace for major news events, analyst warns Bitcoin could see an “impulsive” rally
In a July 26 post on X, popular trader Crypto Ed joined the growing number of voices warning about the recent Bitcoin (BTC) price surge above $67,000.
Bitcoin bears can still sort out their “impulsive” moves.
Bitcoin may have gained around 2% since its daily close on July 25, but not everyone believes the BTC price is bullish in the short term.
For Crypto Ed, the bounce from the previous day’s local low of $63,430 was surprising, which is consistent with the price action from late last week.
“It seems to have bounced off stronger than expected yesterday. It seems impulsive,” he summarized.
“I was expecting a corrective bounce, followed by another drop to 62k, and maybe even lower.”
Nonetheless, the post acknowledged that the market can still yield to bulls and reject downward liquidity.
“While that scenario is still possible, the strength of the current bounce is starting to look like we’ve already completed phase 2 and are headed for new highs again. Let’s see if the PA develops a bit more to see if I’m wrong on the low TF,” Crypto Ed concluded, along with an explanatory Elliott Wave chart.
Here, the long-term BTC price target was set at around $80,000, after which the uptrend consolidated, potentially leading the market down to current levels.
Anticipation continues to build as US presidential candidate Donald Trump attends the Bitcoin 2024 conference in Nashville. Trump has started to be associated with a bullish cryptocurrency market outlook after publicly declaring his supportive policy plans for the industry.
There have also been rumors that the US will strategically hold Bitcoin if Trump is elected.
Space for BTC Price Retest of $63,500
Popular analyst Cole Garner maintained his conservative outlook, noting that order depth remains skewed to the downside.
Related: Bitcoin Whales Drive ‘Unprecedented’ $23 Billion Buying Frenzy in July – New Data
“The overall spot BTC order book is still bearish. Farther to the side,” he predicted that day.
Trading resource Material Indicators has meanwhile set a BTC price downside target of $63,500, which is a key reference point for bulls.
The company said a market drop to that level would invalidate recent bullish signals flashing on two of its own trading indicators.
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.