Bitcoin price has come pretty close to $29,000, the pain point of Bitcoin options contracts expiring today. The market correction of July 28 began in the hours following the FOMC announcement.
Why is the Bitcoin price falling today?
On Friday, the total value of the cryptocurrency market fell a small 1%. It currently carries around $1.8 trillion in volume. This drop has wiped out recent gains in Bitcoin following the FOMC announcement. This left the bulls and bears to compete for the critical support/resistance level around $29.1k.
On-chain data provided by Santiment reveals a significant increase of 10,000 in Bitcoin supply on exchanges over the past 24 hours. Such an increase in supply is often seen as a bearish signal that puts the bears in a positive position against the bulls. Popular analysts predict that we will have a busy weekend.
Going to be a classic weekend move on #Bitcoin? pic.twitter.com/Kw0cFw67fj
— Michaël van de Poppe (@CryptoMichNL) July 28, 2023
Michaël van de Poppe shared an optimistic outlook
The crypto analyst and trader popular on Twitter expressed his optimism that the Bitcoin price could see a classic move over the weekend. This scenario includes a potential retest of the support level at $28,300 followed by a recovery towards $31,000.
However, the analyst also warned that bears could potentially lower Bitcoin’s price to $27.1k. This drop will give altcoins some breathing room to rise. There is also the possibility of synchronized momentum across the market. This brings up a crypto capitulation issue.
Bitcoin price moves into bearish pattern
BTC price is currently struggling to climb above the $29,300 resistance level. Additional selling pressure will give the bears strength for the $28,880 support zone.
BTC also tried a short-term recovery wave above the $29,200 resistance area on the day. It managed to climb above the $29,300 resistance zone but the upside was limited. The price is now trading below $29,300 and the 100 hourly SMA. Instant resistance is near the $29,300 level and the 100 hourly SMA. The first major resistance is still near the $29,600 level.
On the upside, the next major resistance is near the $29,800 level or the 61.8% Fib retracement level of the wave from the $30,334 high to $28,880 high. Above this, the price could rally towards the $30,000 resistance zone. The next major resistance is near the $30,400 level.
Could we see a sharp drop over the weekend?
If Bitcoin fails to break the $29,300 resistance, the bears will likely step in for lower levels. A critical support on the downside is near the $29,000 level. The next major support is at $28,880, where the price could gain momentum lower. After that, there is support at $28,200. An extreme bearish situation emerges with a sharp decline towards the $27,700 level in the short term. The $2.08 billion BTC options contract, which we have included in the analysis of Kriptokoin.com, which expires today, increases volatility.
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