Bitcoin may be seeing “impulsive” upside, analysis warns as markets brace for key news events.
In a July 26 X post, popular trader Crypto Ed joined those cautioning over the latest Bitcoin price spike above $67,000.
Bitcoin bears may still clear “impulsive” move
Bitcoin may be up by around 2% since the July 25 daily close, but not everyone believes in the short-term BTC price strength.
For Crypto Ed, the rebound from local lows of $63,430 the day prior, which matched price behavior from the end of last week, is a surprise.
“Bouncing stronger than I was expecting yesterday, looks impulsive,” he summarized.
“I expected a corrective bounce, followed by another leg lower towards 62k and maybe even lower.”
The post nonetheless acknowledged that the market could still fulfill bulls’ wishes and refuse to take downside liquidity.
“That scenario is still possible, but the strength in the current bounce is starting to look like we have already finished leg 2 and heading to new highs again. I’ll let PA develop a bit more to see if I was wrong on low TF,” Crypto Ed concluded alongside an explanatory Elliott Wave chart.
This contained a longer-timeframe BTC price target of around $80,000, followed by a potential consolidation of gains, which would take the market back down to near current levels.
Anticipation continues to build over an appearance by United States presidential candidate Donald Trump at the Bitcoin 2024 conference in Nashville. Trump has become associated with a bullish crypto market outlook after publicly declaring supportive policy plans for the industry.
Rumors have also swirled around Trump potentially creating a US strategic reserve in BTC if elected.
Room for a BTC price retest of $63,500
Continuing the conservative outlook, popular analyst Cole Garner noted order book depth remains skewed to the downside.
“Aggregate spot BTC order book is still bearish. Moar sideways,” he predicted on the day.
Trading resource Material Indicators meanwhile gave a downside BTC price target of $63,500 as the crucial line in the sand for bulls.
Should the market drop to that level, it said, it would invalidate the latest upside signal flashing on both its proprietary trading indicators.
