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BTC Price Still Stuck at $29,000…for Now: 5 Things to Watch About Bitcoin This Week

Bitcoin (BTC) begins the second week of August with hardly any noise while BTC price behavior continues within a range.

After one of its less volatile weekly closes, the BTC/USD pair remains stuck at $29,000, but will the next seven days be able to provide what is necessary to break the impasse?

Topping the list of potential volatility catalysts is US inflation data in the form of the Consumer Price Index (CPI).a key reading in the upcoming interest rate decision in September.

nonetheless, given that bitcoin has been stubborn this quarter, it may take more than that to rediscover a trend.

Besides, on-chain data points to an accumulation phase for large investors. Network fundamentals should rise while the number of new wallets defies price developments and continues to grow.

Cointelegraph takes a look at the top topics of interest to watch this week when it comes to BTC price action.

Bitcoin Price Downtrend Predictions After Quiet Weekly Close

Bitcoin closed the week without making much noisekeeping its narrow trading range firmly in place and offering nothing by way of last-minute surprises.

The data shows that BTC/USD pair was trading in a $200 corridor overnighta status quo still in play at the time of writing these lines.

For popular traders, this creates the risk of lower levels looming as The bulls lack momentum to beat the selling pressure below the key resistance levels of $29,250, $29,500, and $30,000.

“BTC continues to reject the ~$29,250 level. As long as that continues, the bias favors lower prices,” summarized the trader and analyst Rekt Capital.

BTC/USD commentary chart. Source: Rekt Capital/X (Twitter)

Observing a potential support zone immediately below the spot price, the trader Credible Crypto argued that volatility could pick up simply as a result of the return of the work week.

“In any case, I want to see some strength here or else there could still be another local minimum ahead (which would be nice),” he said. to the followers of X (formerly Twitter) in part of a recent analysis.

For his part, Michaël van de Poppefounder and CEO of the trading firm Eight, suggested that Monday could provide a local low for bitcoin to act on throughout the week.

“Monday is coming up: It’s normally a day when bitcoin makes its standard crash. In that case, My goal is to bid for the $28,000 mark,” said.

“If we don’t break down to that region, then I want to see a rally above $29,700.”

BTC/USD commentary chart. Source: Michaël van de Poppe/Twitter

Questioning the return of BTC volatility

nonetheless, in general bitcoin is suffering from a clear case of suppressed volume, leading volatility to head back to its lowest levels ever.

On weekly timeframes, popular trader Skew noted that volume was virtually non-existent. An accompanying volume profile graph showed that the background to bitcoin’s current multi-month trading range was between $26,000 and $32,000.

“Realized volatility for bitcoin has plummeted to all-time lows,” said CheckmateGlassnode’s principal on-chain analyst, on Aug. 7.

Uploading a chart of bitcoin’s annualized realized volatility, Checkmate revealed that such flat behavior was last seen over three years ago. in the months after the market crash crossed by COVID-19 in March 2020.

“From 1-month to 1-year terms, this is the quietest we’ve seen since after March 2020,” he added.

“Historically, such low volatility aligns with post-bear market hangover periods (reaccumulation phase).”

Bitcoin annualized realized volatility chart with commentary. Source: Checkmate/X

“Reaccumulation” becomes the buzzword when it comes to bitcoin

The term “reaccumulation” is one that appears frequently in current market conditions.

As Cointelegraph reported, the focus is on bitcoin whales in particularas they slowly maneuver into what could be the next run to all-time highs.

Reaccumulation has characterized the environment after every bear market of the BTC price cycle, and analysts hope this time will be no different.

“Retailers sold during this latest bear market, and the whales were unfazed,” argued popular technical analyst CryptoCon. last week.

“The wind is at our backs this cycle, this is big.”

Compared to previous bear markets, Whales are holding back from selling as they continue to rally, and the bull case is getting stronger.

It’s not just about the whales; day traders are also giving cause for optimism the market cyclist Cole Garner.

Asian buyers continue to dominate the daily trading landscape, and this is just as important an indicator that the BTC price is ahead, not behind the market.

“When buyers dominate the Asian session, BTC and ETH prices go up. As a general trend, it almost always happens,” he reasoned. in part of a X thread weekend.

“When Asia starts to sell: usually near a local high.”

Garner described Asian buying dynamics as a “strong alpha that nobody talks about.”

BTC/USD chart with dominance data from the trading session. Source: Cole Garner/Twitter

To reinforce the cumulation argument, bitcoin wallet figures have maintained their own bullish trend despite the fact that the price of BTC has returned to below $30,000 after its local highs.

“This bullish divergence between price and network growth hints at a stable long-term BTC uptrend,” answered the popular analyst Ali next to the Glassnode data.

“Buy during the fall!”

Graph with comments of new bitcoin addresses. Source: Ali/X

Fundamentals show signs of recovery

This week, The fundamentals of the Bitcoin network are divided, reflecting the great indecision of the market.

After drop a little more than 3% in its previous automatic reset two weeks ago, the difficulty of the Bitcoin network should recover some of those losses.

According to estimates from bitcoin educational resource Bitrawr, the difficulty should increase by around 1.2% to be within inches of new all-time highs.

Bitcoin difficulty estimation chart (screenshot). Source: Bitrawr

Refering to hash ratewhat characterizes the current situation is a phase of consolidation within a broader uptrend.

Hash rate values ​​vary considerably depending on estimation, but After recent all-time highs, activity spikes have cooled in recent weeks.

Bitcoin hash rate graph (screenshot). Source: Bitinfocharts

CPI data will reveal what the Fed will do in September

out of bitcoin, everything revolves around the publication of the main macroeconomic data for the week: the CPI for July in the United States.

At a time when inflation indicators almost unanimously point downward, the CPI is a classic catalyst for volatility, so August 10 is a day full of potential trading opportunities.

“This week’s inflation data should add more color to what the Federal Reserve will do in September,” predicted financial commentary resource The Kobeissi Letter, ahead of what he called “another busy week.”

Other macroeconomic data to be released in the coming days are the Producer Price Index for July, due to be released on August 11, and the results of S&P 500 companies, which will be published throughout the week.

While bitcoin has shown less and less reaction to CPI prints in recent months, Looking back, the picture for some market participants is still unmistakably linked to inflation.

“It’s amazing how if you move the bitcoin price 9 months forward, it exactly follows the rate of change of inflation. It’s almost like it can see into the future,” Steven Lubka wrote.Managing Director and Head of Private Clients and Family Offices at Bitcoin investment firm Swan, in part in a recent social media comment.

This article does not contain investment advice or recommendations. All investments and trades carry risks, so readers should do their own research when making a decision.

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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