Bitcoin has entered a new month, but its price has not been as good as expected. The end of July had indeed brought good news as the price of bitcoin had surpassed $24,000. However, maintaining this point was a more difficult task. As the market welcomes the new month of August, bitcoin hasn’t had the best of starts for the new month, entering it with a red daily close.
Will Bitcoin win?
Bitcoin’s rally over the past week has been propelled by different things. The most recent was news that the United States was now in recession after recording two consecutive negative GDP growths, forcing individuals to find where to park their wealth. Bitcoin naturally provided the perfect hedge for people looking to escape rising inflation, sparking a trend of massive accumulation.
He had seen the price of bitcoin quickly break through several important technical levels. The 26th and 27th had been very good days for bitcoin after the digital asset closed both days in the green. But that will quickly change in the coming days.
With the new month, bitcoin has now seen its third consecutive daily red close. Now, this is by no means alarming, given that the digital asset is in a bear market, but it speaks to the performance of the digital asset in the coming days.
BTC falls to mid-$23,000 | Source: BTCUSD on TradingView.com
An example is that if there is no immediate rally, the decline that follows will see the cryptocurrency price plunge more than it actually gained during its recent rally. This means that a failure to stage this bullish rally could send bitcoin back to the $20,000 love.
Obviously, bitcoin has already had strong support at this level and continues to have increasing support at the same point, but it doesn’t make a difference if there isn’t enough buying pressure. on the market. Additionally, as investors rush to take profits during the recent rally, selling pressure may overwhelm traders and focus on shorting the market.
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The digital asset has already lost over $2,000 in the past two days. It also fell back below its 50-day moving average, the same technical level that had been one of the downtrend indicators in previous markets.
For bitcoin to establish an uptrend, it must break above $24,800 and hold that level. Otherwise, there will likely be a rapid price drop over the next few days.
Featured image from Forbes, chart from TradingView.com
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