Bitcoin temporarily topped $ 40,000 before falling again as investor sentiment turned slightly negative.
Bitcoin tanks under $ 40,000 … again
After Bitcoin rose to $ 42,000 over the weekend, it seems like Bitcoin is losing pace again. At the time of going to press, the world’s largest cryptocurrency is down 3%! Bitcoin is currently selling at $ 38,591 with a market cap of $ 724 billion.
Investors are frustrated with Bitcoin’s recent price volatility, which has shown dramatic fluctuations without confirming any particular trend. Algo Traders and Options What Investors Should Do From Now On, says Altcoin Psycho.
According to Bitcoin’s technical charts, if it manages to break above $ 41,000 and hold it for a long time, it will soar to a level of $ 49,000. On the flip side, if Bitcoin crashes below the $ 36,000 level, the next support levels will be at $ 29,000.
If we recapture the range high at 41k, long and close at 49k. If we lose 36k, briefly to 29k.
We just have to wait for one of the triggers pic.twitter.com/e1Dx9RR6Gp
– Altcoin Psycho (@AltcoinPsycho) August 2, 2021
From now on it won’t be easy for Bitcoin investors. Bitcoin’s social attitudes and audience are still slightly pessimistic. Bitcoin sentiment remains somewhat unfavorable based on Bitcoin’s social volume and the ratio of good vs. negative comments as crypto investors / traders are quite active on the social media channel Twitter.
BTC sentiment remains in the negative. Source: Santiment
Related article | On-chain expert predicts a Bitcoin high of $ 162,000 this cycle
On-chain observations for Bitcoin
The Adjusted SOPR (aSOPR) indicator shows that the majority of on-chain spending lost money during the May sell-off. The aSOPR value of 1 was used as the resistor. In the past week, however, the SOPR rose significantly due to the significant profit realization on the Bitcoin blockchain.
The market has stopped taking profits (belief remains) and has absorbed selling pressure, according to Glassnode, with aSOPR rebounding higher.
According to another well-known researcher, Joseph Young, Bitcoin (BTC) is currently trading at levels last seen in February 2021. The open interest on the futures market, on the other hand, is quite low. As a result, Young describes it as “far healthier point-based rehabilitation” and therefore remains optimistic. He wrote on Twitter:
Bitcoin is where it was in February 2021. However, the open interest on the futures market is significantly lower. This is a much healthier point-driven recovery.
Bitcoin is where it was in February 2021.
However, the open interest on the futures market is significantly lower.
This is a much healthier point-driven recovery.
– Joseph Young (@iamjosephyoung) August 2, 2021
However, analysts have warned traders not to base their upward forecasts on previous market rallies. For example, the increase in Bitcoin from $ 66 to $ 1,150 in 2013 doesn’t mean it will increase from $ 29,000 to $ 256,000 in 2021.
Given Bitcoin’s volatility over the past three years, predicting future price movements has proven difficult. If you’re betting on Bitcoin’s long-term future, any price level between $ 30,000 and $ 40,000 could be a decent place to start accumulating.
BTC/USD nosedives below $40k. Source: TradingView
Related article | Bitcoin remains at risk why BTC is below $ 38K. could fall
Featured Image from pixabay, Charts from TradingView, Glassdoor, and Santiment.