Bitcoin Sellers Out Of Ammo? BTC Price Hangs By A Thread At $28,500
17 August 2023 - 3:12PM
NEWSBTC
The price of Bitcoin is finally on the move after weeks of being
stuck in a tight trading range. The number one cryptocurrency by
market cap stands at support with the potential for another re-test
of the lows if bulls cannot push it higher. Related Reading:
Polygon: New Partnership With Korean Telecom Giant Fails To Halt
MATIC Slide As of this writing, Bitcoin trades at $28,500 with a 2%
loss in the past 24 hours. Over the previous week, the
cryptocurrency recorded a 3% loss, while other assets in the top 10
underperformed and trended lower. The nascent industry could be a
short-term crossroads. Bitcoin Price Loses $29,000 Level, But A
Recovery Is Likely? As NewsBTC has been reporting, Bitcoin’s
volatility reached a multi-year low after all major narratives
previously influencing it diminished its strength. Now, the spike
in volatility favored the downside, but how much pressure can the
bears exercise? According to a CryptoQuant analyst, the recent
price action marks one of the highest in recent months. As seen in
the chart below, the last time that Bitcoin saw similar selling
pressure was in late July. The analyst stated: This marks the
strongest surge in selling since July 15th. It wouldn’t be
surprising to witness the pinnacle of selling pressure at this very
moment. As seen in the chart above, the price of Bitcoin bounced
back from support each time that sellers pushed into the current
levels, as measured by the Net Taker Volume. However, sellers could
still push the metric into the July 15th levels and induce a
capitulation event. There is some evidence to support the above.
The chart below shows that BTC’s long positions have fueled the
downside price action by providing liquidity and accelerating the
fall. Related Reading: Ethereum Price Takes a Bit Hit: Main Reasons
$1,720 or $1,650 Are Likely Targets If this continues, Bitcoin
could continue trending downwards into the liquidity pool created
by long positions at $27,000 and $24,700 if bulls give it. On the
latter, crypto analytics firm Material Indicators noted: Bitcoin
price and liquidity continuing to erode and a critical test of
support is eminent. IMO… Losing $29k would be purely psychological.
Losing $28.5k would be technical. Holding $28.3k is critical.
Losing the buy wall at $27.9k would cause a cascade. Cover image
from Unsplash, chart from Tradingview
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