3 mins readEarly August, Bitcoin dipped 2 percent. Around $28.9k it's hovering. Struggling to stick it out above $29k.
It worries many. Experts, particularly.
They oh-so-believe the crypto king might engage more with grumpy bears.
What's amplifying their worries? A dwindling return on the crypto bear market rally. A tumble in divergence on a possible two-pronged peak—both shown by the weekly RSI.
Bitcoin Price Action Analysis
Here's Nick. Digital asset trader, highly respected. Got a unique lens from his spot on Cheeky Crypto, a YouTube Channel. A belief simmering inside him—Bitcoin's price is prepping for its last curtain fall before shooting north, maybe $32k.
How come? He throws a curveball—Elliott's wave principle.
Nick feels Bitcoin will soon find shelter, however brief, around $28.5k. Basing his prediction on earlier zones of support and resistance, the way back up is inevitable in his mind. And a new pinnacle? Maybe.
Nick pushes his weekly insights forward. Bitcoin, he points out, has somewhat of a rhythm. Higher highs and lows steadily kept.
An undeniable trait of an ascendant trend anywhere. Now the interesting bit—he spots a symmetric triangle, falling. What's this now? Well, in the world of charts, it's a pattern. A trend-breaker. It might just catapult Bitcoin back up, towards former peaks.
Why Bitcoin is Unusually Low
Bitcoin is not doing so well in the short run. And guess what? Other types of crypto money, or "altcoins", aren't gaining much either.
Scams using altcoins are making people worried. This fear adds to the falling trend, or "bearish pressure".
Also, Bitcoin's share of the market has stayed steady. It's been between 49% and 50% for some weeks. But as we enter the first week of August, Bitcoin's price is having a hard time. It's hard to tell what will happen.
Some crypto experts, like Nick from Cheeky Crypto, predict Bitcoin might jump up to $32k. But some warn that it might fall more. They worry about a "double-top" trend starting.
How the market behaves in the next few weeks is important. It will shape the direction of Bitcoin and the wider world of crypto. If you're an investor, be careful! Keep a close eye on changes in prices and key facts to make smart choices.
Bitcoin Volatility Prepares To Undercut Stocks And Gold
Bitcoin's price has been wobbly, but not as much as before. It's been unusually steady. The Bitcoin Historical Volatility Index (BVOL) shows this. Weekly changes are nearing record low points we saw at the start of 2023.
This is similar to what happened in January. Then, it was a sign that Bitcoin was about to jump in price!
There's more.
Dylan LeClair, a top analyst at a digital money fund called UTXO Management, has noted an interesting fact.
Bitcoin's "10-day realized volatility" is nearly below the same measure for U.S. stocks, bonds, and gold. This might mean Bitcoin is going to become a safer bet than these other traditional assets soon. It's a hint that Bitcoin is maturing as an investment option.
