Weekend Break Below $62,500 Could Unleash Selling Wave Towards $58,500

Bitcoin's price has been hovering near $62,900 as it heads into the weekend, having touched an intraday low of $62,538 on August 14. This low effectively tested the $62,500 to $62,560 zone that has held as the floor of a five-week trading range between roughly $62,000 and $66,000.

Bitfinex found that Bitcoin tested the $65,000 to $65,500 region six times between August 5 and August 10 without producing a single daily close above $65,000. To reclaim its ceiling at $66,000, Bitcoin needs roughly 3.3% to get there.

A break below $62,500 could unleash a selling wave towards $58,500, which would be a deeper failure zone for the cryptocurrency.

The macro backdrop has turned more favorable this week with softer inflation data, but Bitcoin still failed to hold above its own floor. The weekend now tests whether native buyers can do what a full week of favorable data could not.