BTC Price Analysis: How Low Can Bitcoin Price Drop in August?
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Bitcoin (BTC) slipped below a critical support level at $29.1k, fueling concerns of heightened volatility ahead. Concurrently, the altcoin market followed suit, reflecting the prevailing bearish sentiment within the crypto sphere. The latest market data reveals a 1.5 percent drop in the total crypto market capitalization over 24 hours, amounting to approximately $1.18 trillion.
The downturn was accompanied by the liquidation of more than $140 million in long trades within the past day, as indicated by aggregate data from Coinglass. These market movements were propelled by the recent historic short position of $1.6 billion taken by prominent investor Michael Burry in the stock market.
Bitcoin’s Aug Low: Bear Signal or Bear Trap?
Bitcoin seriously challenging multi-contact point trendline from 2023 bottom. Move through Aug low would be bear signal or bear trap. $BTC pic.twitter.com/FR5eqwgJis
— Peter Brandt (@PeterLBrandt) August 16, 2023
Expert analysis sheds light on the trajectory of Bitcoin’s price. Respected trader Peter Brandt noted the consolidation of Bitcoin’s price between $29k and $31k over recent months. Brandt emphasized caution if the price breaches the year-to-date rising trend, highlighting the upper hand of the bears.
The violation of the rising macro trend by the daily candle strengthens this sentiment. Brandt, however, indicated that only the activation of a bear trap could signal a bullish development, expressing a preference for a horizontally constructed price chart.
Rekt Capital’s Insights: Weekly Closes Crucial
How much could Bitcoin drop this month?
Here’s what is possible by historical #BTC drawdown standards for the month of August in a Pre-Halving year like 2023…$BTC #Crypto #Bitcoin pic.twitter.com/zpJzRSH5j3
— Rekt Capital (@rektcapital) August 16, 2023
Echoing these concerns, Rekt Capital, an industry analyst, emphasized the pivotal role of weekly and daily closing prices in shaping Bitcoin’s course in the weeks ahead. While anticipating potential drawdowns to $20k, the analyst underscored the influence of the double top pattern and falling divergence on the weekly RSI.
In conclusion, Bitcoin’s recent descent beneath a critical support level has ushered in bearish sentiments across the crypto market. Insights from industry experts like Peter Brandt and Rekt Capital underscore the need for vigilance amidst potential volatility and price fluctuations in the coming weeks. As investors and traders navigate these challenges, a close watch on evolving market dynamics is advised.
Filed under: Bitcoin - @ August 17, 2023 7:10 am