As we launch into August, the world of cryptocurrency encounters heightened tension, ensuing a movement of prices which is far from unidirectional. In particular, Bitcoin encountered a 2% drop, stretching to as low as $28,878. Considerably, traders and enthusiasts are clutching onto the key priсe levels for signals of what may surface next.
The recent, marginal drop below the significant level of ~$29250 has rippled palpable concerns across the crypto space. Loss of this level could potentially diverge BTC’s course onto a bearish path, leading to more substantial price drops. However, there is a cautious optimism that BTC could reclaim ~$29250 – a move that could potentially put BTC back en route to reinforce its bullishness.
In the light of these recent events, the short-term holder cost basis of BTC, standing at $28,300, has dominated the interest of the majority. Defined as entities holding onto their Bitcoin for not more than 155 days, the value around $28,300 is anticipated to be tested, with some believing it to be a pivotal support level to watch out for. On the contrary, the intensity of Short-Term Holder selling poses a challenge for the bulls aiming to surpass a level of $33,000.
The anticipation of downward volatility has aroused the attention of other crypto analysts who now turn to the 200-day moving average as a key player to follow amidst a bear market. As of August 1, this figure rests at $27,235. Given the importance of the 200-day moving average in providing strong support for Bitcoin thus far this year, a revisit to this level, albeit at a potentially higher price, holds significant interest for investors and traders alike.
However, it’s essential for enthusiasts to bear in mind that the thrilling world of cryptocurrency isn’t merely about BTC. Other players such as ETH, BNB, XRP, ADA and more, each with their unique attributes and potential trajectories, are all contributing towards carving out the future of the digital currency landscape.
The world of cryptocurrency is indeed a rollercoaster ride, teeming with thrilling highs and heart-sinking lows. Hence, it is absolutely paramount to conduct your own research meticulously before making any investment or trading decisions in this dynamically fluctuating digital market.
Plans between checking oil and water levels in cars and financial charts still need to be drawn despite the hassles. And so, in the dynamic spirit of crypto, may the best trader win. Nevertheless, remember the famous saying; don’t put all your eggs in one basket, which remains quintessential advice.
Source: Cointelegraph
