Bitcoin price could fall further below $29,000 as fears of a flight to Binance make the market nervous.

Bitcoin (BTC) fell below $29,000 on August 3 due to market concerns about the world’s largest exchange; Binance again provoked a fall in BTC prices.

Hourly candlestick chart BTC/USD. Source: Trading View

BTC price analysis is “waiting” for it to touch a known support level again

Data from Cointelegraph Markets Pro and TradingView showed BTC price declining ahead of a modest rally at the Wall Street open.

Rumors of further U.S. lawsuits against Binance made the 24-hour bitcoin bulls disappointing after briefly climbing above $30,000.

Since the trading range is still static, monitoring of the resource Material Indicators predicts that BTC will re-touch the trendline support level.

“If you’re surprised, confused, or think bilateral volatility is over, then you haven’t been paying attention.” He said part of the previous analysis.

For his part, popular trader Daan Crypto Trades suggested that the current BTC price action was nothing more than a continuation of an all-too-familiar pattern.

“I’ve said this before, but I’ll say it again… The longer the price stays here, the stronger the next move.” added that day.

Others downplayed the Binance story. Ki Yong-ju, CEO of analytics platform CryptoQuant, said panic over solvency issues would not be an event.

“I’ve heard about ‘bank risk/failure risk on Binance’ hundreds of times over the years, but their user balances always say otherwise.” tweeted along with charts showing BTC and Ether (ETH) exchange reserves.

Binance Bitcoin and Ether reserves chart. Source: Ki Young Joo on Twitter

Bitcoin volatility could undermine stocks and gold

Overall, however, Bitcoin volatility remains at historically low levels.

According to the Bitcoin Historical Volatility Index (BVOL), weekly volatility was approaching all-time lows seen in early 2023.

Weekly chart of the Bitcoin Historical Volatility Index (BVOL). Source: Trading View

This is consistent with existing comparisons to January, and the Bollinger Band data also repeats the period just before Bitcoin’s Q1 breakout.

Dylan Leclerc, chief analyst at digital asset fund UTXO Management, further noted that the 10-day realized volatility was almost lower than that of US stocks, bonds and gold.

This article does not contain investment advice or recommendations. Every investment and trading step involves risk, and readers should do their own research when making a decision.

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not intended or available to investors in Spain.

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About Ankur Jain

I'm Ankur Jain, and I'm thrilled to be part of the team as an editor. I call India my home, and I have a passion for crafting engaging and well-written articles. With a solid background of 7 years in this field, I bring a wealth of experience to my work. It's my pleasure to contribute to the informative and captivating content you'll find on Stay tuned for some exciting stories and news pieces coming your way!

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