- BTC’s recent dip to $29,005 amid a 19.36% trading volume decline raised caution.
- Bitcoin volatile pattern: Declines, short squeezes, potential trend shift after retracement.
Bitcoin, the largest cryptocurrency by market capitalization, is currently causing concern among investors and traders due to its strong bearish momentum. On August 2nd, BTC broke through its downtrend week, reaching the $29,995 mark, and briefly exhibited a bullish moment following an announcement from MicroStrategy. The company revealed plans to sell up to $750 million in stock to fund Bitcoin purchases. However, the very next day, the bears regained control, pushing the price down to a low of $29,005.
Despite the historical levels of volatility that BTC has experienced this year, crypto analysts have noticed a recurring pattern in recent weeks: initial declines followed by aggressive short positions, subsequent short squeezes, and potential shifts as spot traders buy post-squeeze. This pattern draws parallels with past halving phases, where initial downtrends eventually led to strong bull runs. With the next halving in less than a year, there’s anticipation that BTC will eventually move away from its current high volatility.
Investors are currently treading cautiously with BTC, as trading volume has declined by 19.36%, amounting to a valuation of $12,681,667,790 in 24h .
Will The BTC Bulls Regain Control?
An examination of the daily price chart highlights a dip below the short-term 50-day simple moving average (50 SMA). It is emphasizing the prevailing bearish sentiment. The 50 SMA is currently positioned at $29,341.
The daily Relative Strength Index (RSI) indicates that BTC has slipped below the neutral zone, registering a value of 45. This signals a potential oversold condition.
If buyers manage to drive the price above this narrow range, the BTC/USDT pair could experience an ascent toward the overhead resistance zone. It is spanning from $31,000 to $32,400. Conversely, a breach below the $28,585 level might trigger a downward movement. Moving toward $27,500 followed by a potential further decline to $26,000.
Currently, according to CoinMarketCap, the BTC price stands at $29,204, marking a slight increase of 0.35%.
Will Bitcoin Price reach $30000 before the end of the year? Share your thoughts by tweeting us at @The_NewsCrypto
