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- On August 3, Bitcoin (BTC) dipped below $38,000 for a brief period as evidence of regression from several highs began to move in
- The search for sturdy support higher up the $30,000 channel continues, with traders optimistic that the worst of the longer-term pullback has passed
- Analysts had hoped that a correction would send Bitcoin down several thousand dollars, allowing for a higher low
The search for sturdy support higher up the $30,000 channel continues, with traders optimistic that the worst of the longer-term pullback has passed. On Tuesday, Bitcoin (BTC) dipped below $38,000 for a brief period as signals of regression from range highs started to emerge.
Caution is advised before the price of Bitcoin falls
BTC/USD reached $37,960 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView, before rebounding. The pair had dropped off local highs around $42,500 over the weekend amid fears about regulatory moves from the United States this week and was still trading 3.7 percent lower on the day. Analysts were looking for a correction to knock Bitcoin several thousand dollars lower in order to produce a higher low from which it might continue its upward trend, according to reports.
The goal zone, which was hovering around $36,000, was now critical to maintain in order to avoid what trader Pentoshi referred to as worst-case situations. He cautioned Twitter followers, alongside a graphic displaying important price levels, that deviations would ruin anyone who didn’t plan for them.
On Tuesday, exchange prices were just marginally different from that idea, with significant support remaining at $35,000 on Binance. Resistance was found at $41,000, with sellers focusing their efforts on the range high of $42,500.
A Bitcoin retracement has occurred
Meanwhile, looking farther out, Rekt Capital, a fellow trader and analyst, has seen sense in longer-term market activity, perhaps confirming $29,000 as a floor. In 2021, $29,000 has supplied support on an annual period within four-year cycles, putting post-halving conduct squarely in historical context. Others, including PlanB, the originator of the stock-to-flow price model, were encouraged by Bitcoin’s July recovery and monthly closing.
While the aforementioned analysts focused on bitcoin’s resistance and prospective buying opportunities, other market observers predicted that the digital currency would continue to lose ground. BTC is still trading in its range, and it appears to be obeying the technical bounds of that range ($30k-$42k) quite well so far, according to him.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
