Bitcoin (BTC) firmly defends $64,000...bear market cracks begin

▲ Bitcoin (BTC), cryptocurrency decline/AI-generated image

Bitcoin (BTC) is defending the $64,000 support level and solidifying its rebound structure. Since July, the lows have been gradually rising, and the 20-day moving average has also turned upwards. Technical signals indicating a break in the bearish trend are emerging one after another.

According to the crypto media outlet U.Today on August 7 (local time), Bitcoin is showing signs of regaining upward momentum after weeks of sideways movement above its June low. While the overall trend has not completely reversed, buying pressure is defending the $64,000 support level, gradually reclaiming market dominance. Unlike the sharp drop seen early this summer, July to early August saw higher lows instead of new lows.

The technical structure has also improved. Bitcoin maintained above the 20-day and 50-day moving averages based on consistent accumulation. The 20-day moving average has started to rise, and the 50-day moving average, which had been declining for several months, has flattened. U.Today analyzed that these changes were not present in previous downtrends and signal a weakening of selling pressure.

To confirm a trend reversal, a breakthrough of overhead resistance is necessary. If the resistance level is decisively surpassed, the next hurdle will be the declining 200-day moving average near $72,500. The 200-day moving average remains a key indicator for determining a medium-to-long-term trend reversal for Bitcoin. The Relative Strength Index (RSI) has risen back above the neutral line of 50 to approximately 53. It has not yet entered the overbought zone.

However, trading volume remained relatively low even during the recent recovery. This indicates that strong buying conviction from institutional investors has not yet fully returned. Nevertheless, unlike previous rebounds that quickly collapsed, Bitcoin has recently maintained its gains, forming a stable sideways consolidation above the support level. If Bitcoin holds $64,000, the structure of rising lows will also be maintained.

Conversely, if $64,000 breaks, the sideways phase is likely to prolong. In the current technical structure, the rising 20-day moving average, the stabilization of the 50-day moving average, and the recovery of the RSI are occurring simultaneously, indicating a move away from the previous bear market. Whether Bitcoin breaks through the 200-day moving average near $72,500 will be the key gateway to confirm a trend reversal.

[Key Article Summary]

-Bitcoin has defended the $64,000 support level, forming a series of higher lows since July.

-The 20-day moving average has risen, and the RSI has recovered to approximately 53, signaling a slowdown in bearish momentum.

-To confirm a medium-to-long-term trend reversal, breaking above the 200-day moving average near $72,500 is key.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*