Due to market volatility and Bitcoin (BTC) price fluctuations, identifying the best times to buy the pioneer cryptocurrency can be challenging. Taking this into consideration, a crypto analyst has pinpointed key price levels for investors to monitor for potential buying opportunities. 

Buy Levels To Watch For The Bitcoin Price

A crypto analyst identified as ‘Stockmoney Lizards’ took to X (formerly Twitter) on August 1 to discuss Bitcoin’s recent price movements, highlighting key buy levels and the cryptocurrency’s propensity for a price increase. The analyst notes that Bitcoin’s current price actions indicate a classic 5-wave uptrend followed by an ABC correction with an overarching wave B. 

An ABC correction is a continuous pattern that occurs during uptrends or downtrends. It is a pattern within the Elliott Wave Theory that reflects a three wave correction and helps identify a trend continuation. 

Sharing a Bitcoin price chart illustrating each wave (A, B, and C), the analyst disclosed that Wave B ended at the Value Area High (VAH) around the $69,885 mark. According to the analyst, this price level historically acted as a resistance. This means that Bitcoin’s price may face difficulty moving above this point.

The analyst further revealed that the $66,745 price point also acted as a resistance level for Bitcoin. He highlighted this critical level on the BTC price chart, emphasizing that the red line represents a Point Of Control (POC) for the cryptocurrency. 

Moreover, the 1.618 Fibonacci extension level for Bitcoin is identified as a potential support area for a new uptrend. The analyst disclosed that this crucial level coincides with the 0.5 Fibonacci retracement level and the Value Area Low (VAL), which are all important support levels. 

Concluding his analysis, the crypto analyst suggested that the support area between $61,800 and $62,300 was an important buying level to watch out for. He noted that on the higher timeframe, Bitcoin’s potential uptrend was still intact, adding that if the cryptocurrency’s price breaks below the $61,800 mark, then a further decline to test the 2.618 Fibonacci extension at $56,800 should be expected. 

Overall, the crypto analyst is leaning towards a bullish outlook for the short term and mid term timeframes in Bitcoin’s price. At the time of writing, Bitcoin is trading at $61,594, reflecting a 4.21% decline in the last 24 hours, according to CoinMarketCap. 

BTC Poised To Breakout In September

Other analysts have also remained relatively bullish on Bitcoin’s price, predicting rallies to new all-time highs for the pioneer cryptocurrency. According to a crypto analyst identified as ‘TOBTC’ on X, Bitcoin experienced a significant decline in its price, falling below the $63,000 price mark. 

The analyst revealed that despite Bitcoin getting rejected at the $70,000 resistance, a potential breakout is expected by September. This bullish sentiment is shared by a different crypto analyst, Michael van de Poppe, who predicts that if Bitcoin holds above $60,000 to $61,000, the cryptocurrency could witness an upward movement to new all time highs in September or October 2024. 

Forming a massive red candle in the daily chart, the Bitcoin price takes a quick plunge of almost 6% this Friday. With the crypto market ending the week on a bearish note, the BTC price is down by almost 10% with the weekends left. 

Currently, the biggest cryptocurrency is trading at $61,592 with an intraday rise of 0.30% to reclaim the $61,000 level after a low of $60,433. Amid the downfall, the bearish ripples lead to a massive supply in altcoins, resulting in a drop under $3,000 in Ethereum, a crash in meme coins, and a market-wide wave of liquidations. 

Over the past 48 hours, the crypto market has witnessed a huge wipeout, with almost $500 million in long positions getting rekt. As the bearish powers are rising, let’s find out why the crypto market is crashing today.

Reasons Behind The Fall Of Crypto Market Today: 

The Inactive FOMC Crushes Crypto Market Dream

The recovery rally before the FOMC meeting and the positive July CPI data results formed a bullish broader sentiment. Further, the interest of three major US pension funds expressed interest in buying Bitcoin through the ETFs cemented the sentiment. 

However, the long-anticipated rate cut was delayed in the FOMC meeting, with the next possible decision in September. Hence, the excitement in the crypto market subsides quickly, resulting in a bearish turn of events.

Massive Outflows In Bitcoin ETFs

On August 2nd, massive daily net flows turned bearish after the FOMC meeting. The total net daily inflow of all the U.S. Spot Bitcoin ETFs was negative $237.45 million. The largest outflow was recorded by Fidelity’s FBTC fund of $104.1 million. Other notable outflows were Ark’s ARKB at $87.68 million and Grayscale’s GBTC at $45.95 million. 

In contrast, BlackRock’s IBIT fund on NASDAQ had the highest net inflow of $42.81 million. Thus, the massive outflows brought a catastrophic move in the crypto market.

Mt. GOX Starts Distribution

Earlier this week, despite Mt. Gox distributing Bitcoins worth billions to its creditors, 40% of these were sent to exchanges. With minimal pressure on BTC, the price soared. However, the transfer of $3 billion to exchanges from the $9 billion due, the sell-off wave from the distribution run could fuel the bearish run in the crypto market. 

Bitcoin’s Falling Open Interest Warns Off-roading 

Amidst the market crash, Bitcoin’s Futures Open Interest dropped by -5.17% in the last 24 hours. Further, the OI-weighted funding rate is declining faster and is down to 0.0085%. 

However, on Binance, the biggest centralized exchange, the top traders in the BTC/USDT pair reveal a Long-to-short ratio (Positions) of 1.8582. This ratio means that there are almost 1.86 long positions among the top traders for every short position. Hence, Bitcoin and the crypto market are likely to come back soon. 

Read Also: U.S. Inflation Reaccelerates: Core PPI Hits Highest Level Since 2022, What It Meant For Crypto