After a few months early this year, when Bitcoin broke out of its old resistance, Bitcoin’s investor and coin miner were getting happy when huge profits flowed into their pockets. But it is not keeping too long, in the next months, the Bitcoin’s market is unstable and the upward trend is no longer clear. In the first week of August, The market fluctuated rapidly when the red color continued to appear. So what will going on until the end of this month?
What was happening in the early month?
The last month showed market instability, and in August maybe it will be the same. After the first day of this month, we saw the market open at a price of 64,600 USD per coin. But on the same day, it dropped below 62,200 USD and then returned to 65,300 USD.
However, in the next days, the panic was heightened when the price continuously dropped, peaking at less than 50,000 USD per coin. This makes many investors afraid because previously, many experts analyzed the $50,000 mark as an important resistance point. Bitcoin surpassing this price level could cause the market to reverse.
The state of the market this month is a lot like it was last month. The market steadily rebounded in the days that followed the price decline at the start of the month. Though Bitcoin is recovering well, too early can say it will go back to 65,000 USD, like the price was at the beginning of this month. The resistance is still there at 63,000 USD, it will be better if it breaks out.
The dropped shocked the investor, but not surprised
The honey moon for the investor this year was going well, but the market will not keep going up or down for all time. After the first few months of the year, the market shows signs of slowing down with relatively large sideways waves.
The drop below 50,000 USD really shocked the investor, this is a record decrease since the beginning of the year after the price increase. However, the strong recovery after showing us the resistance point is doing well.
On the recently months, prices increase and decrease continuously, creating insecurity for investors. Red has still dominated in recent months, although there have been recoveries since then. This data makes many people believe that the old peak at 73,700 USD will be the maximum, they are gradually accepting that the market is ready for a future reversal.
Some important information after the recent price drop
After the deep price drop, many investors may be losing a lot of money. But if we look back, after all, we are getting more useful information.
Resistances/support
At first, the market is showing us a clear picture of resistances/support. When the market broke out old resistance to touch new record, new resistances/support will also appear at the same time. Resistance at the highest price level is located in the zone 71,500 USD, and the lowest price level is 46,700 USD. Based on this, I will divide them into resistance/support groups below:
- Group 1: 68,800 USD, 68,000 USD, 67,000 USD.
- Group 2: 64,600 USD, 62,500 USD, 60,400 USD.
- Group 3: 53,500 USD, 50,900 USD, 49,300 USD.
This is important zone you should take a look when the price is nearby. They are relative, not absolutely accurate, so when placing orders, you need to pay attention to avoid misunderstandings.
73,724.36 USD now is the top
Since the day Bitcoin touched a new record, it still shows no signs of coming back and breaking it out. After the events just happened, negative signals are even clearer. For many consecutive months, Bitcoin’s peak price has continuously decreased. Although it cannot be confirmed whether this is an indicator of Bitcoin reversing or not. But I can be sure that the Bitcoin price cannot break out in the short term, especially with only a few months left of this year.
This price drop scenario will be different
Until now, Bitcoin had four times broken out and dropped deeply. In previous times, after Bitcoin’s price broke out, it depreciated quickly, but this time, it was different. The market showed hesitation for many months, then prices dropped. We can see the investor now having a strong belief that Bitcoin’s price will keep going up, maybe it will have a strong breakout in the future.
What’s next?
For now, Bitcoin’s price is around three resistances/supports in group 2 (64,600 USD, 62,500 USD, 60,400 USD). The mark at 60,400 USD will be really important, a bad scenario will gradually appear if the price breaks this resistance level. If it is going to happen in the future, the price falling and approaching the targets in group 3 (53,500 USD, 50,900 USD, 49,300 USD) is entirely possible. However, if the worst scenario happens, I believe the market will not drop below 46,000 USD.
In other case, if Bitcoin can breakout group 2 and keep going back to group 1 (68,800 USD, 68,000 USD, 67,000 USD), at this time, confidence in Bitcoin’s future price increase will be stronger, which proves that the price will easily break the record level that just happened this year.
