Bitcoin (BTC) experienced a significant spike above $30,000 on August 2nd, marking a return of volatility to its trading range. The rally was short-lived, however, as the bulls failed to maintain momentum and hold the market above key pivot points at $30,000 and $29,500.
Michaël van de Poppe, founder and CEO of trading firm Eight, expressed his desire to see the price hold above $29.3K and then make a clean break through $30K in his analysis. This sentiment was echoed by popular trader Skew, who revealed that market makers and market takers were engaged in a battle to influence the trajectory of Bitcoin’s price on lower timeframes.
Skew also noted that the four-hour chart showed a swing failure pattern and a potential support/resistance flip on the high-timeframe, indicating that liquidity and trend confirmation were likely to decrease. Another analyst, Rekt Capital, emphasized the importance of the $29,250 level as a line in the sand for the bulls. As long as Bitcoin can hold above this level, there is potential for higher prices. However, if it turns into resistance, lower prices can be expected.
Aksel Kibar, a chartered market technician, highlighted the significance of the rising trend line in BTC’s price action. He suggested that the current support levels were reliable and recognized by market participants. Kibar’s target for upside potential was set at $34,000, with $28,400 being an area of interest on that specific day.
It is worth noting that this article does not provide investment advice or recommendations. As with any investment or trading move, there are risks involved, and readers should conduct their own research before making any decisions.
In conclusion, Bitcoin briefly soared above $30,000 before facing resistance and dropping below key pivot points. Traders and analysts have expressed the importance of various support and resistance levels, with each offering insights into Bitcoin’s future price movements. As volatility returns to the market, it is crucial for investors to stay informed and conduct thorough research to navigate the risks involved.