Attention Traders! Bitcoin May Soon Be Oversold; Bulls Remain Passive—Will August Be a Bullish Month?

The post Attention Traders! Bitcoin May Soon Be Oversold; Bulls Remain Passive—Will August Be a Bullish Month? appeared first on Coinpedia Fintech News

The crypto markets are plunging as the Bitcoin price dropped and marked lows close to $60,500 in the early trading hours. This appears to have caused havoc within the markets as the global market capitalisation has dropped below $2.2 trillion. The bears have taken over the rally to a large extent, which exhibits the possibility of a fresh bearish trend. But will the BTC price re-test the yearly lows below $55,000?

The price is facing huge selling pressure but the possibility of marking fresh bottoms for the year below $54,500 appears unlikely. The current trade set-up suggests the whales have begun to extract the profits, as the trade has remained elevated since October 2023. Hence, a bullish wave impulse could be cashed out, which could cause huge harm to the BTC price rally ahead. Even though the bulls are leaving no stone unturned to prevent further losses, the bears appear to be determined to drag the levels below $60,000 during the weekend. 

The price tested one of the crucial support zones between $60.555 and $61,465 and quickly triggered a rebound. The Bollinger bands continue to squeeze while the price drops below the lower bands and the crucial 200-day MA. This may either trigger a rebound or else if the bears manage to plunge below $60,450, then the token could head towards the next support at $56,800. 

Along with the bearish moves, the technicals have also turned bearish. The DMI, which had encountered a bearish crossover, continues to remain bearish. Besides, the RSI continues to form consecutive lower highs and lows, signalling the possibility of hitting the lower threshold in the coming days. 

Hence, the technicals suggest the Bitcoin (BTC) price may face huge losses during the upcoming weekend. The possibility of dropping to $58,000 emerges as the bulls continue to remain calm despite the growing selling pressure. However, a couple of rebounds may prevent a steep descending trend, but the bears appear to be poised to drag the levels below the crucial support. 

On the other hand, the Bitcoin (BTC) price has plunged below the 200-day MA in the longer timeframe, which certifies the bearish trajectory for the token.