If Bitcoin is to maintain its longer-term uptrend, it must avoid breaking down below $56,000, according to a crypto analyst.
Bitcoin’s next move needs to print a bullish “higher high” on the price chart to keep its uptrend intact after recently dropping below $58,000, according to a crypto analyst.
“We really need to start to bounce out of this and make a higher high to further confirm that we are in this uptrend that we’ve been in since August,” crypto analyst Matthew Hyland explained in an analysis video on Aug. 30.
Bitcoin must not fall below $56,000 to maintain uptrend
“Bitcoin needs to remain above this $57.7K level, however, if it were to break down, it really, ultimately would need to hold this $56K level, if we were to lose this $56K level that would be a lower low,” Hyland added.
However, some traders believe Bitcoin BTC $59,097 needs to go much lower before resuming its uptrend.
On Aug. 7, Markus Thielen, head of Research at 10x Research, suggested market participants wait for Bitcoin’s price to “fall into the low $40,000s” to ideally time their entry into the bull market.
At the time of publication, Bitcoin is trading at $59,218, bouncing back from a dip to $57,925 within the same 24 hours, according to CoinMarketCap data.
Hyland reiterated that since the beginning of August, Bitcoin has “seen higher lows and higher highs, higher lows, higher highs, noting that the beginning of both July and August saw “major pullbacks.”
Overall, Hyland believes that Bitcoin will continue to “see some chop” ahead of the United States presidential election on Nov. 5.
He also sees September having “mostly sideways action, which is historically the worst performing month for Bitcoin.”
Bitcoin price action in September might not mirror the “boring” trends of previous years, as Bitcoin miner selling pressure has stabilized and the stablecoin supply ratio is showing bullish signs.
Meanwhile, pseudonymous crypto trader Jelle shared with their 91,000 X followers that a zoomed-out, multiyear view of the Bitcoin price chart suggests Bitcoin could still be on course to reach the six-figure mark in the near term, a target many traders have been speculating about.
“This multi-year cup & handle pattern has a 6-figure target,” Jelle wrote in an Aug. 30 X post.
“Many at this point have given up on it, but I’m pretty sure we’ll be a lot closer to that target by the end of the year,” Jelle added.
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