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Bitcoin price is back in the red as retail investors feel the pinch of keeping their positions open. Despite reclaiming highs above $29,500 during the Asian business hours on Monday, Bitcoin is down 1.8% to $28,878 on Tuesday.
According to Callie Cox, an analyst at eToro US Investment, the current market lull can be attributed to the now evident seasonality patterns.
“The seasonal patterns we see show that bitcoin prices have been a little bit weaker in August and September,” Cox said on CoinDesk TV’s “First Mover’ show. “People are going off to the beach; they’re not looking at their portfolios or trading their portfolios.”
Amid the narrowed trading range and liquidity crunch, Bitcoin price rolled back to $28,489 on Tuesday. If investors embrace the drop to gain more exposure to BTC, they are likely to build momentum for the anticipated breakout above the psychological price level at $30,000.
Bitcoin Bull Run in the Offing?
According to an analysis shared by Captain Faibik, a popular trader, Bitcoin has formed “another monthly candle… closed below $30,000.” Faibik believes while BTC is heading into a bull run, currently, it is still in accumulation.
$BTC Another Monthly Candle has Closed Below the 30k.
Bitcoin Bull run isn't Started yet, We're Still in Accumulation Phase.#Crypto #Bitcoin #BTC pic.twitter.com/lTZjl0HZ5h
— Captain Faibik (@CryptoFaibik) August 1, 2023
Insights from on-chain analytics firm Santiment affirms that notion by revealing that “key whale and shark stablecoin wallets appear to be loading up during Bitcoin’s visit below $30,000 here at the end of the month.”
Accumulation of stablecoins often suggests an incoming major breakout in prominent digital assets like Bitcoin and Ethereum, as they allow investors to prepare to take their positions.
“#Tether, USDCoin, #BinanceUSD, & #Dai are all seeing supply shifting into these key wallets,” Santiment added.
Where to From Here?
Bulls must keep working around the clock to fight the impact of a sell signal that was recently confirmed by the Moving Average Convergence Divergence (MACD) indicator on the four-hour chart.
The call to traders to sell BTC coupled with the indicator’s rejection from the mean line (0.00) implies that bears hold substantial influence on the direction Bitcoin price may take in the short term.
Based on the Bollinger bands, a knee-jerk reaction is expected as the price recoils back into the bands. That said, it is possible that Bitcoin price will close the day above $29,000, with bulls pushing for a return above $29,500.
Until Bitcoin price breaks above $30,000 and sustains an uptrend, it would be prudent for investors to start acclimatizing to frequent dips to $28,000 support. Declines may intensify to $25,000 if they overshoot the $28,000 buyer congestion area.
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