Bitcoin has played out as expected, but the real test lies ahead with a potential drop to $53,000.
In today’s analysis, we’ll break down the key levels and what to watch for in the days to come.
Despite the choppy price action this month, Bitcoin has played out nicely according to plan.
Those in our VIP group know that I was anticipating a sweep of $63,300 as early as the first week of August.
Here’s a post I shared on X back then:
The idea was simple.
Liquidity had built up above the August 8th high, and $63,300 was a key level for BTC.
Additionally, there was an imbalance for Bitcoin based on the August 2nd candle just above the $63,300 mark.
Markets seek liquidity, making the $64,000-$65,000 area a prime target.
However, there’s also a BTC weekly imbalance near $53,000 that remains unfilled.
So, I was always looking for a sweep of $63,300, followed by a failure at that key level, leading to a move toward $58,000 and potentially $53,000.
While Bitcoin has played out as expected, there’s still work to be done to open up the $53,000 inefficiency.
Bitcoin needs to break below $57,500 on the daily time frame to expose $53,000.
The challenge for shorts is that today is Friday, and the crypto market tends to stall over weekends as liquidity dries up.
But overall, I like the odds of a $53,000 retest as long as Bitcoin remains below the August 5th trend line near $61,400.
