Bitcoin (BTC) experienced a 2% decrease at the beginning of August, in line with traders’ expectations of further downward movement. The BTC/USD price trajectory indicated a decrease at the close of July, which was anticipated due to a week of minimal movement. However, this left bullish traders at a disadvantage.
Renowned trader and analyst Rekt Capital emphasized the significance of the closing price, urging buyers to step in and protect the current trend. He highlighted the $29,250 level as a critical support line. Rekt Capital explained that for the desired bullish scenario to play out, Bitcoin needed to reclaim $29,250 as support, as it closed slightly below this level. If the resistance around $29,250 persisted, the price would potentially reject it and move lower.
In terms of short-term targets, many market participants expected a test of the $28,000 range. Specifically, the level of $28,300 was important as it represented the cost basis of Bitcoin’s short-term holders (STHs). Short-term holders, defined by on-chain analytics firm Glassnode as entities holding BTC for a maximum of 155 days, have consistently found support at this level throughout recent months. James Straten, a research and data analyst at crypto insights firm CryptoSlate, predicted that Bitcoin would likely test this support level for the third time this year.
Furthermore, renowned trader Titan of Crypto identified the $28,300 level as a crucial level to monitor in the coming week. This level was seen as a potential support for Bitcoin’s price. Daan Crypto Trades also highlighted the 200-week moving average (MA) as a significant support level, specifically at $27,235. This level has consistently provided support for Bitcoin during the current year, making it an area of interest for traders should further downside occur.
It is important to note that this analysis and prediction of price movements does not constitute investment advice. Each investment decision involves risk, and readers are encouraged to conduct their own research and analysis.
In summary, Bitcoin experienced a 2% decrease at the start of August, aligning with traders’ expectations of further downside. The price trajectory indicated a potential decline, with significant support levels at $29,250, $28,300, and the 200-week moving average. Traders and analysts closely monitored these levels to gauge the direction of BTC’s price movement. However, it is essential for readers to conduct their own research before making any investment decisions.
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