The post Bitcoin Heads Toward $28,500 – BTC Traders Now Eye This Level Next appeared first on Coinpedia Fintech News
Today’s discussions have been dominated by Bitcoin’s price, as recent market trends have pushed the asset below the significant $29K threshold, leading to its consolidation. With the beginning of August, Bitcoin saw a 2% dip, mirroring traders’ predictions of an ongoing bearish trend. The breach below the psychological barrier of $29K has sparked a sentiment favoring the opening of more short positions, thereby intensifying the downward pressure and sending Bitcoin toward critical support levels.
Short-Term Holders Focus On $28.3K Next
The price fluctuations of Bitcoin have consistently piqued interest and fueled speculation due to its often-volatile nature. Nevertheless, recent data might raise some red flags for those holding or investing in Bitcoin.
Curve Founder’s $100 million loan has brought an impact on the crypto market, plunging several assets below their support levels today. The Bitcoin network is seeing a decrease in inflows, suggesting a possible slowdown in new or existing investments, which are vital for price stability or growth.
This often signals reduced market interest and can lead to price drops. Additionally, trading volumes, a key measure of market activity, are also declining.
As for short-term objectives, many market observers agree that the $28,000 region is likely to be tested.
Specifically, the $28,300 level is noteworthy as it represents the average cost of Bitcoin for speculative investors, often referred to as short-term holders (STHs). These are identified by the on-chain analytics firm Glassnode as entities holding BTC for no more than 155 days.
Bitcoin is anticipated to soon approach the $28.3K support level, a threshold that will be tested for the third time this year. The upcoming trajectory of Bitcoin will depend significantly on this level, potentially driving it to either new lows or sending it toward resistance levels.
What’s Next For BTC Price?
Bitcoin slipped beneath the 20-day EMA at $29.1K today, signaling that bears might be gaining the upper hand. Bitcoin price continued to decline, and in recent hours the trend gained a boost from sellers to test immediate support level. As of writing, BTC price trades at $28,802, declining over 1.4% in the last 24 hours.
The downward trending 20-day EMA and the RSI nearing the selling region at level 33 suggest a slight advantage for the bears. The long tail on the bearish candles signifies that buyers are still interested near lower levels.
Any attempt to initiate a recovery rally could encounter resistance at the 20-day EMA. If the price continues to decline from its current level and dips below the crucial $28.3K, a severe bearish rally might emerge, plunging the BTC price to $27,200.
To avoid this decline, bulls will need to send the price above the 20-day EMA. The BTC price could initially ascend to $29,500 and then to the resistance zone of $30,100 to $30,500.