Bitcoin’s Price Discovery Rally Depends on This Week’s Performance
Bitcoin (BTC) is attempting to recover after falling below a crucial support level, with this week's performance deemed critical for its future trend.
Bitcoin's Recent Performance
- Bitcoin dropped to a local low of $112,296 on August 3, losing its post-breakout range for the first time in three weeks.
- Prior to this drop, BTC had been trading between $114,000-$120,000, reaching an all-time high of $122,838.
- The cryptocurrency retested the range lows twice last week but failed to recover from a previous weekend’s price action.
- The analyst Rekt Capital indicated that BTC’s bull flag formation is at risk due to recent price movements.
This week is crucial as it will determine if the $117,200 area becomes resistance or if BTC can reclaim the structure. A successful recovery would be seen as a fake downside deviation, while turning it into resistance would confirm a bearish breakdown.
Impact on Price Discovery Trend
- This week’s performance will influence BTC's second Price Discovery uptrend, which has entered its fifth week.
- A failure to close above the pattern's bottom could indicate an end to this uptrend sooner than historically expected.
- If BTC reclaims the Bull Flag and challenges new highs, it may follow historical patterns of the second uptrend.
- Reclaiming could lead to a potential third Price Discovery uptrend before any bear market.
