Bitcoin’s Crucial Support Level: Will it Hold at $29,250 Before Monthly Candle Closes?
Bitcoin's Crucial Support Level: Will it Hold at $29,250 Before Monthly Candle Closes?
The Blockchain Industry Under Pressure: Bitcoin’s Price Decline and Market Concerns
The world’s largest cryptocurrency, Bitcoin (BTC), has recently experienced a sharp decline, reflecting the broader decline in the cryptocurrency market. This decline has raised concerns among Bitcoin bulls, who closely monitor the cryptocurrency’s price movements to determine the market’s stability.
According to crypto analyst Rekt Capital, Bitcoin is currently hovering below a critical support level of $29,250. This support level plays a crucial role for Bitcoin bulls, as a sustained breach could trigger a macro trend shift and potentially lead to a retest of lower support lines. Rekt Capital further highlights that Bitcoin has over a week to continue holding this support level, with the July Monthly Candle Close serving as an essential milestone. However, the analyst warns that there is enough time for the market to shake out investors with downside volatility potentially occurring below this level.
At present, BTC is trading at approximately $29,000, with the momentary loss of the 50-day Moving Average (MA) at $29,250. This aligns with Bitcoin’s squeeze momentum indicator, indicating a downtrend cycle. Historical patterns suggest that such cycles usually result in a consolidation period lasting 15 to 30 days following a sharp decline, similar to the recent one experienced by BTC.
While there seems to be downside pressure, there is positive news for Bitcoin bulls as well. BTC’s Average Directional Index (ADX) indicator is spiking, suggesting a loss of momentum in the current downtrend. Nevertheless, if the current downtrend persists, the only notable support lines would be at $28,200, $28,100, $27,200, and the critical 200-day MA at $26,800. The 200-day MA is crucial for Bitcoin’s long-term trend, and losing it could compromise the current bullish sentiment.
In the broader context, the entire cryptocurrency market is facing pressure ahead of Wednesday’s upcoming interest rate decision. However, according to the crypto trader known as “The Wolf Of Few Streets”, Bitcoin’s support levels at $28,800 and $28,300 should prevent a significant fall. The trader expects that the Bitcoin market has already priced in the expected increase and predicts that the market will bounce off one of these support levels and test $32,000 again after the interest rate data is released on Wednesday.
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Moreover, The Wolf Of Few Streets remains optimistic about positive news that may emerge regarding Exchange-Traded Funds (ETF) decisions, which could further support the market. The trader sees no immediate negatives for BTC and believes that a minor liquidation of long positions has been long overdue, making the timing for a decline perfect. However, The Wolf Of Few Streets does not expect this decline to last long.
In conclusion, while Bitcoin’s recent price decline has created concerns in the market, there are still factors that support a bullish outlook. Bitcoin bulls are closely monitoring the crucial support level of $29,250, and the upcoming interest rate decision and potential positive ETF news could provide further support for the market. However, the cryptocurrency industry is facing pressures that demand vigilance and careful analysis for both short-term trading and long-term investment strategies.