Bitcoin's Breakout Support Levels in Focus as Price Action Divides Traders
Bitcoin's recent price action has left traders wondering whether its late-August breakout still stands. After pulling back from session highs near $82,000 on Coinbase, the largest cryptocurrency is currently trading around $79,600.
The retreat followed a significant influx of institutional demand, with Bitcoin seeing $730.8 million in ETF inflows on September 3, led by BlackRock's IBIT. This surge in demand has reshaped crypto market dynamics and sparked debate among analysts about support levels.
Some analysts, such as Ali Charts, believe that the recent price action is a retest of the breakout, with the next objective being $85,000 if $80,600 holds as support. On the other hand, Wealthmanager argues that Bitcoin has broken a descending structure and is pulling back to retest $78,800-$79,300.
While some analysts are bullish on Bitcoin's prospects, others are more pessimistic. Aralez published a four-step plan that includes a drop below $50,000 before a bottom forms, calling the latest advance 'short-lived hype' and market manipulation.