Due to market volatility and Price fluctuations of Bitcoin (BTC)., it can be challenging to identify the best times to buy the pioneer cryptocurrency. Taking this into account, a crypto analyst has identified the most important price levels that investors can pay attention to potential purchasing opportunities.
Buy levels to watch the Bitcoin price
A crypto analyst identified as ‘Stockmoney Lizards’ joined X (formerly Twitter) on August 1. discuss Bitcoin’s recent price movements highlight this main purchasing levels and the cryptocurrency’s tendency to increase in price. The analyst notes this Bitcoin’s current price action indicate a classic five-wave uptrend followed by an ABC correction with an overarching wave B.
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An ABC correction is a continuous pattern that occurs during up or down trends. It’s a pattern within the Elliott Wave Theory that reflects a three-wave correction and helps identify a trend continuation.
Sharing a Bitcoin price chart illustrating each wave (A, B, and C), the analyst revealed that Wave B ended at the Value Area High (VAH) around $69,885. According to the analyst, this price level has historically acted as a resistance. This means that Bitcoin’s price may have difficulty rising above this point.
The analyst further revealed that the $66,745 price also acted as a price point resistance level for Bitcoin. He highlighted this critical level on the BTC price chart and emphasized that the red line represents a Point Of Control (POC) for the cryptocurrency.
Moreover, the 1,618 Fibonacci extension level for Bitcoin is identified as a potential support area for a new uptrend. The analyst announced that this crucial level coincides with the 0.5 Fibonacci retracement level and the Value Area Low (VAL), all important support levels.
Concluding his analysis, the crypto analyst suggested that the support area between $61,800 and $62,300 was a key buying level to watch out for. He noted that on the higher time frame, Bitcoin’s Potential Uptrend was still intact, adding that if the cryptocurrency’s price falls below $61,800, a further decline can be expected to test the 2.618 Fibonacci extension at $56,800.
Overall, the crypto analyst leans towards one bullish outlook for the short and medium term in the price of Bitcoin. At the time of writing, Bitcoin is trading at $61,594, reflecting a decline of 4.21% in the past 24 hours, according to CoinMarketCap.
BTC is about to breakout in September
Other analysts have also remained relative optimistic about the price of Bitcoin, predicting rallies to new all-time highs for the pioneer cryptocurrency. According to a crypto analyst identified on X as ‘TOBTC’, Bitcoin experienced a significant reject in its price, dropping below the $63,000 price line.
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The analyst revealed that despite Bitcoin being rejected at the $70,000 resistance, a potential breakout is expected by September. This bullish sentiment is shared by another crypto analyst, Michael van de Poppe predicts that if Bitcoin holds above $60,000 to $61,000, the cryptocurrency could witness an upward move towards new all-time highs in September or October 2024.
Featured image created with Dall.E, chart from Tradingview.com