Analysts say Bitcoin price needed a break before reaching new highs

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The high-level optimism generated earlier this week when Bitcoin and altcoin prices rose was tempered on August 12, with BTC falling below $ 43,000. This has led some analysts to warn that the price action seen over the past week was nothing more than a dead cat rebound.

Data from Cointelegraph Markets Pro and TradingView shows an early morning wave of selling has pushed the price of Bitcoin (BTC) to a low of $ 43,752 and at the time of writing, the bulls are struggling to push the price down at $ 45,000.

4 hour BTC / USDT chart. Source: TradingView

Here’s what analysts are saying about Bitcoin’s current price development and what they expect in the near term.

$ 43,600 and $ 43,000 are key support levels

According to market analyst and Cointelegraph contributor Michal van de Poppe, Bitcoin’s fall from $ 45,000 to $ 43,500 was quite normal, with higher period charts showing a bearish divergence, implying that we could have another corrective move. “

Poppe identified $ 43,600 as support level 1 and $ 43,000 as support level 2 and noted that these are key areas to watch out for at this time.

In the short term, Poppe has indicated that the price of Bitcoin could potentially rebound to $ 45,000 and then fall back to test that support level again, and if the support is recovered, it is possible to conclude that the buyers are returning to the market. .

Poppé said:

If those two levels of support are lost, we’re probably looking at $ 42,000 next, and if that doesn’t hold up, $ 41,000 after that. And for me this is the break where I want to start sucking hard because I don’t want to see him drop further down the line because the only level we have left after that is $ 38,000. “Bulls just take a break before pushing higher

The Bitcoin price drop on Thursday was also seen as a normal move by David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha. Lifchitz pointed to the almost uninterrupted rise of the past two plus weeks as a sign that the bulls need to take a break before continuing their push higher.

According to him, the $ 36,000 for BTC and the $ 2,300 for Ether are obvious targets, but he further stated that no one knows how far the withdrawal will be from where we are now.

Lifchitz said:

But maybe the lows could be bought before reaching those levels. Of course, that’s in case there isn’t another regulatory drama, otherwise a review of the level of $ 30,000 for BTC and $ 1,800 for Ether would not be ruled out. $ 45,200 has been a strong level of Bitcoin support in the past

According to Rekt Capital, a pseudonymous Twitter analyst, the $ 45,200 price point has been a tough resistance level in the past.

Unfortunately #BTC failed to hold ~ $ 45,200

That said, $ BTC failed to perform a clean new test of around $ 45,200 previously (red circles)

Earlier this year, BTC is expected to drop the wick in orange areas before going higher

Hold orange and BTC will reverse #Crypto #Bitcoin pic.twitter.com/12NQaPysXF

Rekt Capital (@rektcapital) August 12, 2021

In previous cases, when BTC traded near these levels, the price retested and held support around $ 44,200 before staging another rally.

Based on this analysis, if BTC can stay near this level, the price will reverse and rise.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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