Bitcoin Price Drops Below $29K
• Bitcoin (BTC) price shed 2% into the start of August, dropping to around $29,417.
• Trader Rekt Capital flagged $29,250 as an important level for BTC.
• Short-term holders have a cost basis at $28,300, which is expected to be tested soon.
Key Price Level To Watch
Bitcoin traders are closely monitoring the short-term holder cost basis as an important support level for the cryptocurrency’s price. Data from Cointelegraph Markets Pro and TradingView showed that Bitcoin’s price trajectory was leaning lower at the end of July. This volatility was anticipated by traders and investors alike, who are now looking to see if buyers will step in to protect the trend.
Popular trader and analyst Rekt Capital has identified $29,250 as the line in the sand for Bitcoin prices. He believes that if this level is not reclaimed as support then prices could drop further via a red path scenario. All eyes are now on this key support level to determine where BTC/USD prices go next.
Cost Basis Of Short-Term Holders
Short-term holders have a cost basis of around $28,300 which analysts predict could be tested soon if Bitcoin does not reclaim its crucial support levels above $29k. Analysts will be watching closely over coming weeks to see how well these levels hold up against bearish pressure.
Potential Support Levels
Traders are also watching out for other potential support levels as they look ahead to August’s market performance. These include psychological price points such as $30K or even higher levels such as previous all time highs at around $42K in June 2021. A break below these levels could result in further losses but any positive action taken here could set up bullish momentum going forward into autumn 2021 and beyond.
Monitoring Market Performance
It remains unclear whether or not these key support levels will hold up against bearish sentiment but analysts will be keeping a close eye on market performance over coming weeks for indications of where Bitcoin might head next. If buyers can step in and defend current price points then it is likely that BTC/USD could break out of its current range and potentially move back towards all time highs seen earlier this summer – providing fresh optimism for bulls looking ahead into autumn 2021 and beyond!