The S&P 500 (SPX) rebounded strongly from its weekly low and ended the week flat. Bitcoin (BTC) similarly rebounded from its weekly low and ended the week up slightly by about 1%. The failure of bears to capitalize on the weakness suggests that lower levels are attracting buyers.
Bears attempted to deepen the pullback on August 12, but bulls bought Bitcoin’s dip and are struggling to sustain the price above the psychological level of $60,000. Bitcoin’s volatility is keeping traders on guard. The Crypto Fear and Greed Index, which hit a low of 17/100 on August 6, rose to 48/100 on August 9 and again fell back into extreme fear territory at 25/100 on August 12.
The next big question is whether the recovery will be sustained? Inflows into spot Bitcoin ETFs have been volatile over the past few days, indicating uncertainty among investors. Another short-term negative is that institutions appear to have stopped buying stablecoins, according to on-chain analytics platform Lookonchain.
Can Bitcoin and altcoins extend their gains or will higher levels attract sellers? Let's analyze the charts to find out.
BTC Technical Analysis
Bitcoin turned down from the moving average on August 11, showing that the bears are not willing to give up without a fight.
The $55,724 level is an important support level to watch on the downside. If it breaks, it would indicate that sentiment remains negative and traders are selling on the rise. That would open the door for a drop to $49,000.
Conversely, if the bulls push the price above the moving average, it will signal buying on dips. The BTC/USDT pair could then start moving towards $70,000. The bears are expected to defend the $70,000 to $73,777 zone strongly.
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