Bitcoin Holds Key Level Amid Rejection, Analysts Suggest Caution

Bitcoin (BTC) attempted to recover the level of resistance of $ 108,000 again, but faced the refusal when the third quarter (Q3) began, bringing some market observers to suggest caution for the next few months.

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Bitcoin holds a crucial range

The Bitcoin price ended with a second quarter with a $ 108,000 barrier test before being rejected and closing Q2 and June around the area of ​​$ 107.140, its highest monthly closure in history.

Despite the positive performance, the flagship cryptocurrency began in July with a Pullback towards $ 105,000, hitting a minimum of a week of $ 105,623. Analyst Rekt Capital said that this BTC post-Ruakout suggestion is underway, which would strengthen the case of cryptocurrency for another advantage.

The analyst previously explained that Bitcoin needed a weekly closing above the support of $ 104,400 after having lost it, since the recovery of this area would have consolidated its recovery of prices and positioned the cryptocurrency for a test and confirmation of this level.

Furthermore, it would continue to build its base around this area to move on to the second trend on the rise of BTC. According to Tuesday analysis, the new Weekly Close suggests that Bitcoin is positioned for another post-breakout test.

The analyst also observed that, in the last 40 days, BTC has broken out of two 2 -week downward trends but was rejected by the 6 -week downward trend, around the $ 108,000 sign, in the same period of time.

Sjuul of Altcryptogems has noticed the refusal of this level, stating that “it is mandatory for the bulls to intervene quickly and not allow the price to have too large a dip”. The peak cryptocurrency needs a “strong rebound with the most important level of support and resistance, only to $ 106-104k”, which has momentarily detained.

For the analyst, not being able to hold back this area would open the doors to a larger Pullback, risking a drop in macro support between $ 101,000 and $ 102,000. He highlighted a large gap between the current support area and the macro support, which has formed on the recent recovery of prices.

BTC risks a massive drop in Q3

Sjuul stressed that below the support of $ 101,000, “there is not much to defend the price with a much lower reduction”, adding that “BTC’s quarterly historical return for the third quarter was not exceptional, so this adds a certain caution to the image that we took from the table”.

Likewise, Cryptovane Daan negotiations have said that historical data show that Q3 is generally the slowest period for Bitcoin and Ethereum (ETH) due to the reduction of activity, volume and liquidity during the summer months.

He added that, as the beginning of a new quarter and month, BTC will probably see a “rough start”, but Bitcoin is still consolidating within his current range and the descending channel, suggesting that investors should give him time to “play and look at the confirmations” of the direction he will take for the rest of the month.

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However, the analyst Ali Martinez gave a warning sign, as an indicator that had foreseen “every great Bitcoin crash” has just appeared. For Martinez, the sequential indicator of Tom Demark, a rare warning that historically preceded violent pullbacks, showed a sales signal in the quarterly period.

In particular, the same signal appeared in 2015 and in 2018, with BTC who has -75% and 85% after the indicator was flashed. If he follows his historical performance, the analyst has provided that BTC could descend to the sign of $ 40,000 in this quarter.

At the time of drafting this document, Bitcoin is exchanged at $ 105,901, a drop of 1.16% in daily times.

In the foreground image from Usplash.com, graphic designer from tradingview.com