Bitcoin (BTC) has experienced a recent price spike, but analysts are cautioning that a further dip could be imminent. The cryptocurrency’s price action, resembling a pattern seen last week, comes as markets prepare for key news events, including a speech by Donald Trump at the Bitcoin 2024 conference.
Short-Term Gains Amid Caution
Bitcoin has risen by approximately 2% since the daily close on July 25, reaching above $67,000. However, not all traders are convinced of the short-term strength in BTC’s price. Popular trader Crypto Ed highlighted the surprising rebound from local lows of $63,430, which mirrored price behavior from the previous week.
“Bouncing stronger than I was expecting yesterday, looks impulsive,” Crypto Ed noted. He had anticipated a corrective bounce followed by a further drop towards $62,000 or even lower. Despite the current bounce, Crypto Ed acknowledged that the market could still fulfill bullish expectations and avoid further downside.
BTC/USD chart. Source: Crypto Ed
“That scenario is still possible, but the strength in the current bounce is starting to look like we have already finished leg 2 and heading to new highs again,” he added, referencing an Elliott Wave chart that suggested a longer-term BTC price target of around $80,000.
Anticipation for Trump’s Bitcoin Conference Speech
There is growing anticipation for Donald Trump’s appearance at the Bitcoin 2024 conference in Nashville. Trump, a United States presidential candidate, has been associated with a bullish outlook for the crypto market after expressing supportive policy plans for the industry. Rumors also suggest Trump might consider creating a US strategic reserve in Bitcoin if elected.
BTC/USDT order book data. Source: Cole Garner
Potential for Further Decline
Despite recent gains, some analysts maintain a conservative outlook. Popular analyst Cole Garner pointed out that the aggregate spot BTC order book remains bearish, predicting more sideways movement for the market.
Trading resource Material Indicators also highlighted a downside target of $63,500 as a critical level for Bitcoin bulls. Should the market drop to this level, it would invalidate the latest upside signals from proprietary trading indicators.
BTC/USD chart with trading indicator signals. Source: Material Indicators
In conclusion, while Bitcoin has seen a recent price increase, traders and analysts warn that a further dip to $62,000 or lower is still a possibility. Market participants will be closely watching upcoming events and technical indicators for further direction.
