Bitcoin’s Price Drops $29K Amidst Traders’ Focus on Key Levels for Next Moves

As August began, Bitcoin faced a 2% decline, aligning with traders’ expectations of further downside. The monthly close for July showed BTC’s price trajectory leaning lower, signaling volatility. Despite a week of minimal movement, bulls were left disappointed.

Rekt Capital, a popular trader and analyst, emphasized the significance of the close price and called for buyers to protect the trend. He highlighted the $29,250 level as a critical line in the sand. Bitcoin’s ability to reclaim $29,250 as support would validate a positive path, but initial signs suggested this level might act as resistance, leading to a potential drop lower.

In the short term, market participants noted that the area around $28,000 could face a test. $28,300 stood out as the cost basis for Bitcoin’s short-term holders (STHs) – entities holding BTC for a maximum of 155 days. Analysts, including James Straten of CryptoSlate, anticipated a potential test of this support level for the third time this year.

The 200-week moving average (MA) also drew attention as a classic bear market support level. Traders watched the $27,235 200-week MA closely, considering it an area of interest in case further downside occurred. However, Daan Crypto Trades reminded followers that this might take time and price levels could revisit these points at higher prices.

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