It might look like Bitcoin has been sort of stuck lately. And you might be wondering what is going on. For months now, the price has been bouncing between $58,000 and $70,000, without any major moves in either direction. Analyst James Check, better known as Checkmate, believes that Bitcoin is getting ready to break out of this pattern. But the big question is: which way will it go?
According to Checkmate, Bitcoin’s current price action signals that the market is at a tipping point. “The current price action of Bitcoin screams to me that the price range is becoming unsustainable and that the market is ready to choose a different direction,” he says. At time of writing Bitcoin is priced at $59,233, good for gains of almost 3% in the past 24 hours.
https://twitter.com/_Checkmatey_/status/1830374689904251138
Bitcoin’s Been Stuck in a Range for Months
Ever since hitting an all-time high back in March 2024, Bitcoin has been trading in a pretty tight range. Sure, we’ve seen a few dips to the lower end and some attempts to push higher, but overall, the price has stayed within the $58,000 to $70,000 zone. Right now, the $60,000 level seems to have a strong hold on Bitcoin, drawing it back whenever it tries to stray too far.
But recently, the swings have been getting bigger, which might mean that we’re about to see a shift. If this market is going to stay bullish, we need to see Bitcoin move into a higher range. A push above the current levels could set us up for new all-time highs in the near future. However, it’s just as possible that we see a drop that shakes up sentiment. So, what should we be looking out for?
More Short-Term Bullish Signs
Adding to this, another well-known analyst, Titan of Crypto, has spotted a bullish pattern forming that could lead to a bounce back in the short term. On X (formerly Twitter), he shared with his followers that “a strong RSI bullish divergence is forming on the 4-hour chart.” RSI stands for Relative Strength Index. It’s a tool used in trading to measure the speed and change of price movements, helping to identify if an asset is overbought or oversold. RSI divergence happens when Bitcoin’s price and the RSI indicator move in opposite directions which you can see in the two charts that the analyst shares, signaling a potential trend change. For example, if prices are falling but the RSI starts rising, it suggests that the drop might be losing strength and a bounce could be coming.
https://twitter.com/Washigorira/status/1830688280242741696
If the RSI divergence pattern plays out, we might see an imminent relief rally that lifts Bitcoin out of its current rut. While it doesn’t guarantee a long-term reversal, it’s a sign that we could see some upside action soon. Yesterday we reported on how two other analysist are also expecting a late September breakout.
Key Factors to Watch: U.S. Economic Data
Right now, Bitcoin’s next move might depend more on the U.S. economy than anything else. We need solid economic data, especially from the job market, to keep things on track. If the labor market starts showing signs of weakness, it could increase fears of a recession, and that wouldn’t be great news for Bitcoin.
This week, there’s a load of important job data coming out of the U.S., and it could be a game changer. If the numbers look weak, like they did on August 5th, we might see Bitcoin hit new lows. But if the job market holds up, the chances of a continued bull market look a lot better.
Are We Heading for New Highs or Lows?
The next few days could set the tone for the coming months. Positive job data might push Bitcoin higher, but if things don’t look good, we could see a deeper dip. It’s a crucial moment for Bitcoin, and all eyes will be on the U.S. economic reports.
So, do you think we’ll see new all-time highs in 2024 or 2025? Or are you expecting a different outcome? As always, follow us at HowToBuyBitcoin.org for the latest news, updates and analyses.