In what has become a familiar pattern over the past few months, Bitcoin has surged in value. (BTC) Gold prices were met with a wave of selling at a key level as the price quickly fell more than 3% during the early hours of Monday in the United States after it surpassed $70,000 for the first time since early June.
Traders will be familiar with this price pattern in 2024, which first appeared in mid-January when Bitcoin surged to a multi-year high of $47,000 after the ETFs opened for trading. The upward move was reversed within minutes, and days later Bitcoin dropped below $40,000 before the uptrend began again.
We saw similar price action in early March after Bitcoin hit an all-time high above $69,000, only to find itself below $60,000 hours later. Later that month, the move to another record high above $73,500 was quickly extinguished, and more than four months later that level has yet to be challenged again.
While the above may be frustrating for leveraged traders and their profits and losses, technicians may notice a pattern where each of these examples shows higher highs and higher lows – the kind of “up and to the right” chart that bulls love to see.
Earlier in July, Bitcoin fell below $54,000 after a German government agency began disposing of its stockpile of 50,000 tokens that had been confiscated as part of a criminal case. However, just two days before August, Bitcoin is poised to close out the month with a significant gain from the $63,000 region where it began.
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