- Critical Support Holds Strong: Bitcoin’s critical weekly support at $58,000 remains solid as it re-enters the $60,000 zone. Despite recent volatility, this level continues to hold firm through multiple tests.
- Powell the Disruptor: Jerome Powell is set to address the market on Friday, with potential impacts expected. A 0.25% rate cut in September has a 75% probability according to CME Group, and traders are preparing for possible market shifts.
- TOTAL Market Cap Steady Above $2 Trillion: The crypto market cap remains above $2 trillion, despite ongoing market noise. Rumors of a potential lifting of China’s crypto ban are adding to the uncertainty.
Zooming out, Bitcoin’s chart reveals a resilient asset. Over the past few weeks, it has swung 20% only to return to the $58,000 level. While some see this as a testament to Bitcoin’s strength, others are wary of the fragility of the cryptocurrency market. Global factors, like the Japan interest rate hike, had significant impacts, with Bitcoin dropping 15% with 24hrs two weeks ago.
![Coin Flow Tracker](https://cdn.cryptonews.com.au/2024/08/21123852/Weekly-Bitcoin-Chart.png)
![Coin Flow Tracker](https://cdn.cryptonews.com.au/2024/08/21123852/Weekly-Bitcoin-Chart.png)
The Roller Coaster of Emotions: Relief, Frustration, and Anticipation
Traders are experiencing a whirlwind of emotions. Some are relieved they avoided the drop from $72,000, while others are anxiously awaiting the next big move. The bears, on the other hand, are hoping for a crash to fill their bags. Each group is following its own strategy, but with Bitcoin’s continued range-bound movement, a significant move seems imminent. A dip to $50,000 isn’t out of the question, but as long as $58,000 holds, shorting at this level for me remains risky and isn’t within my trade plan.
Liquidity Zones: The Market’s Squeeze Points
The market loves a squeeze, and there are billions of dollars in leveraged positions both above and below Bitcoin’s current price. According to Coinglass, dense liquidation zones exist around $70,000. As a trader, monitoring these levels on various timeframes is crucial for both short-term and long-term strategies.
![Coin Flow Tracker](https://cdn.cryptonews.com.au/2024/08/21123800/Binance-BTC_USDT-Liquidation-Heatmap24-hour-2024-08-20_23_15_24.png)
![Coin Flow Tracker](https://cdn.cryptonews.com.au/2024/08/21123800/Binance-BTC_USDT-Liquidation-Heatmap24-hour-2024-08-20_23_15_24.png)
![Coin Flow Tracker](https://cdn.cryptonews.com.au/2024/08/21123814/Binance-BTC_USDT-Liquidation-Heatmap1-month-2024-08-20_23_06_47.png)
![Coin Flow Tracker](https://cdn.cryptonews.com.au/2024/08/21123814/Binance-BTC_USDT-Liquidation-Heatmap1-month-2024-08-20_23_06_47.png)
My Insight: Traders often monitor these levels to predict where potential market squeezes might occur.
Powell’s Speech on Friday: Prepare for Volatility!
Jerome Powell’s speeches are notorious for causing market turbulence. His upcoming address is expected to focus on interest rates, with the official announcement scheduled for September 17-18. The anticipation of a rate drop could fuel global market activity, making this a critical event to watch closely.
Get Ready for Another Wild Week!
This is crypto—anything can happen! It’s vital to stay prepared and informed. Join the Empire Crypto Trading platform now to access the latest crypto charts, free education, airdrop guides, and more. Don’t miss out—sign up today and be part of the Empire!
At the time of writing this article, Bitcoin was trading at $60,480.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. The author takes no responsibility for any financial losses incurred as a result of trading or investing based on the information provided. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.
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