Crypto Market Update August 1: Bitcoin Drops Below $63,000 as Pi Network, PUMP, Lead Gains

The crypto market is dropping today, August 1, as escalating geopolitical tensions between the US and Iran weigh on market sentiment and trigger an increase in selling pressure.

The ongoing drop has also caused $238 million in liquidations per Coinglass data, with 78% of these being long liquidations. However, Pi Network (PI) and Pump Fun (PUMP) are defying the drop with over 6% in gains.

Crypto Market Drops as US-Iran Tensions Escalate

Data from CoinMarketCap shows that all of the top ten crypto coins by market cap are trading in the red apart from Tron (TRX) and Dogecoin (DOGE), which are up slightly by 0.42% and 0.40%, respectively.

The total crypto market cap has also dropped by 1.03% to $2.16 trillion at the time of writing. The drop comes on the back of escalating geopolitical tensions between the US and Iran after President Trump warned that more strikes would be launched against Iran.

Trump’s latest threat comes barely a day after CoinGape reported that the US and Israel are planning to impose a land blockade of Iran to exert economic pressure that will force Iran to negotiate to end the war.

Despite the threats, Iran launched drone attacks on Kuwait on August 1, a move that pushed the price of crude oil to $84.

The crypto market also dropped as traders rushed to sell in fear of the conflict escalating this weekend, with Coinglass data showing that $283 million in both long and short positions were liquidated on July 1.

Still, the crypto fear and greed index moved from “extreme fear” to “fear,” suggesting there is some resilience among traders despite Bitcoin dropping to $62,900.

Despite the slight shift in sentiment, this index remains in bear territory, suggesting that most buyers are still hesitant to dip their toes in the market amid escalating geopolitical tensions.

Bitcoin Price Prediction Amid Crash Below $63,000

Bitcoin price dropped below $63,000 on August 1 due to an increase in selling pressure caused by traders fleeing the market because of fear that the conflict between the US and Iran will escalate.

However, the volume histogram bars that are green suggest that the drop below $63,000 led to some traders buying the dip.

This buying pressure had pushed BTC above this price of $63,000 at the time of writing. Still, BTC price needs to make three straight closes above $63,000 to suggest that the upward trend is resuming.

The RSI reading of 39 suggests that the long-term Bitcoin price prediction is bearish. The MACD line that is also negative suggests that the momentum is favoring bears as the crypto market drops.

Bitcoin has also created a bear flag on the four-hour chart that suggests the gain above $63,000 might not last.

If Bitcoin closes below $63,000, the price could drop by 4.5% and reach $60,345.

Pi Network Defies Bearish Crypto Market Sentiment With 6% Rally

Pi Network is up by 6% today, August 1, to trade at $0.086 at the time of writing. The gain comes despite the crypto market dropping, suggesting that buyers are ignoring the fears around escalating geopolitical tensions.

The daily chart shows that Pi Coin is creating a double bottom pattern. The pattern appeared when the price of Pi Coin held the support at $0.007 on July 17 and again on July 28.

If this pattern plays out as buying pressure remains high, Pi Coin price could reach the psychological resistance of $0.10. If it closes above this obstacle for three straight days, Pi Network price could reach $0.12.

The gains come ahead of the planned Protocol 26 upgrade on August 11, with buyers rushing to purchase more coins on hopes that the event will push the price up.

The AO bars that are green also support a bullish long-term Pi Network price forecast. They suggest that bears are losing their grip as bulls regain control.

PUMP Price Nears 3-Month High

PUMP price is up by 7.7% to trade at $0.0021 at the time of writing. This crypto coin now trades at its highest price since February 17, as it defies the bearish sentiment in the broader crypto market.

The volume histogram bars that are green for three straight days suggest that these gains come from an increase in buying pressure.

The MACD line that is positive also supports a bullish long-term PUMP price forecast.

The recent gains have pushed the price of PUMP above the 200-day EMA of $0.0021. However, the price has yet to close above this EMA.

If PUMP closes above this EMA, it could move to the next psychological resistance of $0.030. However, failing to close above this price could push the price of PUMP to the July 29 low of $0.0018.

Catch up on the recent big moves in the market with our Crypto Market Update July 30.