In the first week of August, Bitcoin’s price experienced a 2 percent drop, falling to approximately $28.9k. The struggle to hold the support level above $29k has led experts to believe that the top digital asset could continue facing bearish sentiment in the coming weeks. Additionally, the diminishing return on the crypto bear market rally and a falling divergence on a possible double top, as indicated by the weekly RSI, have raised concerns.
Bitcoin Price Action
Respected digital asset trader Nick from the Cheeky Crypto YouTube channel has a different perspective, suggesting that Bitcoin price might be in the final phase of its correction before a potential surge toward $32k. Nick argues that the current price action could be indicative of the third wave of the Elliott principle.
He expects Bitcoin to find temporary support around $28.5k based on historical support and resistance zones before rebounding for a new high. Furthermore, from a weekly perspective, Nick highlights that Bitcoin price has maintained higher highs and higher lows, a characteristic of a rising trend in any market. He also observes the formation of a symmetrical falling triangle, which could lead to a quick breakout toward former highs.
On the Flipside:
While Bitcoin’s short-term weaknesses persist, the altcoin market has not seen significant gains in recent days. Concerns have grown due to recent rug pulls and altcoin scams, adding bearish pressure in the short term. Additionally, Bitcoin dominance has remained stable between 49 and 50 percent over the past few weeks.
As the first week of August unfolds, Bitcoin’s price continues to face challenges and remains uncertain. While some experts like Nick from Cheeky Crypto foresee a potential surge toward $32k, others caution about the bearish sentiment and potential double-top formation.
The market’s reaction in the coming weeks will be crucial in determining the overall trend of the top digital asset and the broader cryptocurrency market. Investors should remain cautious and closely monitor price movements and key technical indicators to make informed decisions.
Source: https://coinpedia.org/bitcoin/bitcoin-btc-price-might-restest-28-5k-level-this-week-heres-why/