Bitcoin trading cycle cools down slightly after previous high

After hitting $60,000 in the last 24 hours, a phase of profit booking has taken the Bitcoin trading cycle just below the mark, but crypto indicators look much better than earlier.

A minor correction has occurred in the crypto market after Bitcoin had surpassed the $60,000 trading level. As a result, the Bitcoin trading cycle has gone through a dip. Meanwhile, the technical crypto indicators all point to bullish market characteristics. Even the current decline could just be a temporary profit-booking event.

The increasing adoption of crypto by individuals and institutions worldwide has played a crucial role in the market’s resilience. Moreover, the entry of institutional investors, such as hedge funds and asset managers, has provided a much-needed boost to market stability and liquidity.

Besides, the current crypto indicators indicate a cycle where Bitcoin is attempting to consolidate above $60,000. It would need renewed strength from traders and investors at this juncture. At the same time, a further dip could take the level around $56,000 as BTC’s support, as in previous weeks.

The recent dip in BTC’s price a few weeks ago was analyzed by experts. According to a crypto analytics firm, short-term holders suffered the most from the dip, while long-term holders continued to lend support.

Analysts stated through the report, “Despite tumultuous and choppy price action, the conviction of Long-Term Holders remains steadfast and unfazed.”

BTC/USD 1D price chart

Bitcoin is currently trading at around $59,600 on August 21, 2024, with BTC/USD trading lower by a margin of around 2% in the last 24 hours. Bitcoin’s market cap was trading at around $1.1 trillion in the last 24 hours.

BTC/USD is trading below its 20-day EMA (around 60,700), as BTC’s 24-hour volume was at approximately $27 billion. The global crypto market cap decreased by around 2%, trading above $2.1 trillion. BTC’s year-to-date returns are above 41%.

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