Chart of the Day – Thursday, August 8, 2024

How many times will we get a chance at this trade? Will this one fail?
The pops have gotten weaker each time. What do you think? #Bitcoin pic.twitter.com/wds0s9eqVe

— Against All Odds Research (@JasonP138) August 8, 2024

Today’s Chart of the Day was shared by Jason Perz (@JasonP138).

• Bitcoin reclaimed a critical support level, around $58k today, signaling a Failed Breakdown. If Bitcoin is above $58k, the bears are trapped, and the path of least resistance is higher in the near term.

• Jason points out that this is the second Failed Breakout of the Summer. The one in July wasn’t very successful, producing a lower high. After making a lower low on Monday, the Bulls need a higher high next.

• Bitcoin broke out to all-time highs in February, but it’s been rangebound between $58k ~ $70k for nearly six months now. The rest of the crypto market will be a mess until Bitcoin starts to trend higher again.

The Takeaway: Bitcoin reclaimed support at $58k today after breaking down over the weekend, marking the second Failed Breakdown of the Summer. Bulls need this one to produce a higher high after failing to do so last time.