Bitcoin (BTC) is currently caught in a battle between bulls and bears in a sideways market, as both sides struggle to gain control. This analysis was highlighted by Daan Crypto Trades, who identified a key price level that needs to be reclaimed to provide support for BTC.
According to Daan Crypto Trades, the BTC price has been fluctuating above and below the current spot price, resulting in a strongly contested range. The midpoint of this range is the level to watch closely. The current status quo has remained unchanged since mid-June, with $28,500 acting as a crucial support level and $31,800 as resistance.
In order for the bulls to shift the market in their favor, it is important for them to gain control of the price area around $29,700. This would provide the necessary momentum to change the landscape of the market. Daan Crypto Trades emphasized the significance of this area, stating, “It’s an important area to keep watching.”
An accompanying chart provided by Daan Crypto Trades displayed BTC/USD struggling to rise above the range low, with little historical support between $28,500 and $29,500. Other perspectives from recent weeks have also highlighted $28,500 or slightly lower as a possible downside target.
On the other hand, short-term BTC price events were examined by fellow trader Skew, who pointed out the frenetic nature of the mid-$29,000 zone for Bitcoin. He shared exchange trade data that showed large-volume bids absorbing selling pressure on August 11.
Despite holding above various exponential moving averages (EMAs), Skew described the spot price action on 4-hour timeframes as “weak.” He anticipated a potential 5%+ price reaction due to the tight price compression at the current level.
It is important to note that this article does not offer investment advice or recommendations. The cryptocurrency market involves risks, and readers should conduct their own research before making any investment or trading decisions.
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