Bitcoin (BTC) is struggling to avoid further losses this week as a prolonged sideways trading period could lead to a crash.
BTC price action, long capped by resistance above $30,000, looks increasingly erratic, according to data from Cointelegraph Markets Pro and Cointelegraph Markets Pro. transaction view show.
The minutes of the latest Federal Reserve meeting released on August 16 intensified the Bitcoin bear game, and buyer interest fell, causing BTC/USD to fall to a near two-month low of $28,300.
Given the tight trading range since June, even if the total is less than $1,000 in dollar terms, the decline is quite large.
Now, traders and analysts are preparing for further retests of support levels, including levels not seen since earlier this year.
Classic Bitcoin Bear Lifeline Back on the Map
The top near $28,000 has brought a major long-term trendline back into focus for bitcoin market watchers.
Among them is James Straten, a research and data analyst at cryptocurrency insights firm CryptoSlate. For him, the 200-day and 200-week simple moving average (SMA) are the bottom line for bulls.
— James V. Stirlitz (@jimmyvs24) August 17, 2023
The 200-week moving average is a classic line of support during periods of downward pressure on BTC prices, and losing it is typical of the abyss of a Bitcoin bear market.
However, 2022 saw Bitcoin’s longest ever break below the 200-week moving average.
This month, analysts predict that holding on to key trendlines will be one of the factors that will allow BTC prices to reverse into a “full bull market” next month.
Trendline cluster lurks above $27,000
The importance of the current Bitcoin spot price range becomes apparent from the perspective of the support trendline.
Various trendlines, including the simple moving average (SMA) and exponential moving average (EMA), are currently forming a cluster between $27,000 and $28,600.
A series of bullish EMAs and MAs are located below the current price of Bitcoin. Will these EMAs and MAs continue to provide support for Bitcoin in the coming days/weeks? pic.twitter.com/6RdCAhDA85
— Dalvir (@CryptoDalvir) August 17, 2023
As Cointelegraph reported earlier in the day, the short-term 100-day moving average is currently being tested as part of the Aug. 17 daily candle.
$28,000 remains ‘heavy’ BTC price support
Meanwhile, $28,000 remains intact in the eyes of the market as a psychological base.
Related: Bitcoin Speculators Now Own Least BTC Since $69k All-Time High
For popular trader CryptoCon, there is still no need to worry about a sharp price drop, and other “bullish support” should hold up against the bears as well.
“Bitcoin plunges $700, bears rejoice. Meanwhile, healthy bullish support fully intact,” read part of X’s post that day.
“$28,000 remains strong support on all time frames. Will these bullish supports hold? I think so!”
CryptoCon builds on existing comparisons to BTC prices in 2015-2016, when the market was gearing up for a bull run that peaked at $20,000 in the previous cycle.
I wasn’t there at the time, but I’m sure every sideways grind and dip down to 111DMA on the 2015-16 Pi-Cycle Top felt like it was over.
But guess what?#bitcoin just keep going
Are we parabolic? …no ❌
Bull market? …Yes! ✔️
Seems like a healthy retest to me! pic.twitter.com/UdXAhLv8RO
— CryptoCon (@CryptoCon_) August 16, 2023
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This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.