Bitcoin price broke the horizontal support area it had maintained throughout July to the downside this week. While the course remains uncertain at current levels, analysts draw attention to 2 important developments.
Bitcoin investors are having a hard time
According to a recent Glassnode report, the number of lost Bitcoin addresses has reached a new monthly high. This means that most BTC investors are waiting at a loss these last days.
https://twitter.com/glassnodealerts/status/1692872863408120247
The chart above shows that Bitcoin’s breakeven point is above the current level, confirming the short-term focus. Meanwhile, the BTC supply that has been active in the last 10 years has risen to a new ATH. This shows that long-term investors did not change their point of view despite the hard crash.
https://twitter.com/glassnodealerts/status/1692827556465049668
Interest rates and regulatory uncertainty are the two biggest hurdles, experts say
The US central bank, the Fed, renewed its hawk messages at its July meeting. According to Mark Connors, head of research at 3iQ, with its real rates soaring, Bitcoin may remain in the midst of high volatility for a while. In a new interview, Connors stated that under the current conditions, Bitcoin’s volatility will continue. He also interpreted a clear approach from the regulatory side as the main development that will accelerate the flow of corporate funds.
Connors also mentioned that ETF approvals will have a direct impact on the market. As Cryptokoin.com reported, the high-profile applications of June had an impact on social volume as well as prices.
Analyst predicting 2021 crash maps new highs
At the time of writing, Bitcoin was trying to find support in the $26,000 region. Foretelling the 2021 crash, Dave the Wave says bear conditions will last until the end of the year. In his new analysis from his account X, the leader shared that the crypto is still trading in the “buy zone”:
Some perspectives on BTC macro:
1] Graph showing steepness of price and corrections relative to LGC (logarithmic growth curves).
2] The recent up move has regained exactly 50% of the previous correction.
3] This correction may continue until the end of the year – 50% fib time extension.
4] Possible target fiber levels for this fix.
5] Line to watch the final breakout upwards.
6] Another similar move after the correction could see prices rise to ATH levels by the middle of next year.
The analyst pointed to the 2024 second half for the next Bitcoin bull in the last item. Dave the Wave uses his own version of logarithmic growth curves (LGC) for his predictions, which tries to predict Bitcoin’s macro ups and downs. In addition to the LGC proposing a new run for Bitcoin, the monthly MACD, a long-term momentum indicator, also says it is bullish:
2.5 years ago, the current price would have been a bit high to buy. But now? A reasonable investment, similar to BTC LGC for the unexposed. Not to mention the long-term MACD (crossed the bull and stabilized just below the zero line)…”
Finally, you can take a look at the critical developments of the new week that will directly affect the Bitcoin price trajectory.
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