Bitcoin price struggles below mid-range: bottom formation or further decline?

Bitcoin is trading around $62K on Monday, down 1.7% in the past 24 hours. Analyst damskotrades shares an in-depth analysis on X in which he looks at the price across multiple timeframes. The conclusion: Bitcoin is still below the mid-range, and a deep correction is not yet over. In the longer term, however, he sees a bottom forming, although that requires patience.

Bitcoin is available at OKX and Bybit.

In short:

• On the short term, Bitcoin is still moving below the mid-range and is showing further correction.
• In the longer term, the analyst sees a bottom formation phase, with plenty of volatility and false breakouts expected.
• The analyst is waiting for concrete triggers such as a mid-range sweep or the reclaim of the range high before taking large positions.

Short term: one of two targets reached

On the shorter timeframe, damskotrades sees that Bitcoin has reached one of the two price targets. The range high remains a valid target as long as the range low stays intact, but the risk of new entry positions is now greater than three to four weeks ago, in his view. The price is still below the mid-range, which indicates that the correction has not been fully completed.

This aligns with earlier analyses that pointed to a possible further decline towards $54.000 to $57.000. Historically, August is also not a strong season for Bitcoin. For now, the analyst is keeping his short-term positions and waiting for clearer signals before scaling up.

Long term: macro bullish, but patience required

On the higher timeframes, damskotrades paints a macro bullish picture. He believes Bitcoin is currently in a bottom formation phase before the cycle continues upwards. This kind of bottom takes time and is accompanied by plenty of back-and-forth movement and false breakouts, especially during the summer months. The analyst is therefore largely sitting in stablecoins and waiting for confirmation.

In his chart, he draws a comparison with Meta’s price action over a similar cyclical period. Both charts show a comparable pattern of peaks, corrections, and a slow bottom formation ahead of a new upward move.

What triggers is he looking for?

Before the analyst increases his macro positions, he is waiting for two specific scenarios. First, a sweep of the mid-range as a trigger to enter on a dip. Second, the reclaim of the range high, which is a sign that the market is showing strength again. Until then, he remains selective and only positions himself on the short term.

The charts show that the range low around $60.000 is a crucial support zone. As long as it holds, the range high of roughly $73.000 remains a realistic target in the medium term. A break to the downside, however, would significantly change the picture. For more on recent developments around Bitcoin, you can also read about how users are moving BTC en masse after the Coldcard hack.