Bitcoin (BTC) was trading at $61,876 at the time of writing after a 2.3% drop in 24 hours. The largest crypto by market cap is retracing after a strong weekend rebound that saw the price soar to as high as $65,000.
According to one analyst on X, Bitcoin could rally to $86,000 if it rises again and holds above $65,440.
Another technical analyst, Gert van Lagen, notes that more gains could be routed after Bitcoin broke a three-year chart pattern. The analyst anticipates that by the end of the year, the BTC price will have surged to $260,000.
Once $BTC leaves Base 4, the steepest kind of ascent $BTC has ever witnessed is to be expected.#blowofftop pic.twitter.com/9WkSA6n4L9
— Gert van Lagen (@GertvanLagen) August 26, 2024
Is BTC Ripe For More Gains?
Bitcoin’s recent price retracement appears to have stemmed from sellers who sold at the recent local top above $65,000. After the recent rally, most new investors that bought at around $60K-$64K made profits, which explains the price dip.
The Relative Strength Index (RSI) has dropped to 30 on the one-hour chart. This means that sellers were behind the recent drop in price. With the RSI nearly entering the oversold region, there is a chance for a positive rebound.
The current swing in the RSI mimics the trend that happened on August 19. After BTC had neared the oversold region, the price rebounded shortly after, with a 7% gain. If this pattern repeats itself, BTC is poised to rally above $66,000, which will pave the way for a rally to an all-time high (ATH).
However, the Moving Average Convergence Divergence (MACD) shows that BTC is still on a downtrend. The MACD line is below the signal line, showing that bears have the upper hand.
A further look at the negative MACD histogram bars shows that sellers are still in control. Therefore, BTC is still at risk of a steeper price correction that could take it to $60,479.
Nevertheless, the selling pressure could be overpowered by demand due to the rising inflows into spot Bitcoin exchange-traded funds (ETFs).
Data from SoSoValue shows that on the 26th of August, inflows into spot BTC ETFs hit $202M. The BlackRock iShares Bitcoin ETF also had the highest inflows of $224 million since July.
The growing demand for Bitcoin ETFs comes amid anticipation around interest rate cuts in September. If the Federal Reserve trims rates next month, it will mark the first time it has done so in years.
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