Bitcoin entered a new monthly cycle, however its value has not performed as well as anticipated. It was indeed a good month for bitcoin, with the price of Bitcoin reaching $24,000. This point is difficult to keep. Although bitcoin welcomes August’s new month with excitement, it hasn’t had the most positive start. It entered the month with a negative daily close.
Bitcoin Wants to Win
Bitcoin’s recovery over the last week has been propelled forward by different things. Recent was the news that the United States is now in recession, following two years of negative GDP growth. This caused individuals to look for places to store their wealth. The perfect protection for those who sought to escape rising inflation was Bitcoin, which triggered a major accumulation trend.
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The price of bitcoin had broken several technical records. After the closing of both the green and the red days, the 26th and 27th were great days for bitcoin. This will soon change, however.
Now, with the start of the new month bitcoin saw its third consecutive daily close in red. This isn’t alarming, as the digital asset remains in a bearish market. However, it is indicative of how the asset will perform in the next days.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
An example is that if there is no immediate recovery, the decline that will follow will see the cryptocurrency’s price plunge more than it actually gained in its recent recovery. This means that bitcoin could be relegated to its $20,000 price point if it fails to maintain the bullish rally.
Bitcoin has seen substantial support in the past at this level, and it continues to receive increasing support. However, the lack of buying pressure does not affect the price. Investors rush to make profits after the recovery and traders may become overwhelmed by the selling pressure, which could cause them to focus on shorting the market instead.
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Over the past two days, it has lost over $2,000 on digital assets. The technical level which was used to indicate the bear market in the past markets has fallen below 50-day moving mean.
Bitcoin must reach $24,800 in order to create a bullish pattern. If it does not, bitcoin will likely see a sharp decline over the coming days.
Featured image by Forbes. Chart from TradingView.com
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