After rising all the way to $42,000 over the last weekend, it looks like Bitcoin is losing steam once again. The world’s largest cryptocurrency is down 3% as of press time! Bitcoin is trading at $38,591 levels with a market cap of $724 billion.
The recent price volatility has got investors frustrated as Bitcoin is showing wild oscillation without confirming any particular trend. Options and algo-trader Altcoin Psycho explains what investors should be doing henceforth.
Based on the Bitcoin technical charts, if Bitcoin manages a breakout above $41,000 and holds for long, we shall be heading to $49,000 levels. On the downside, if Bitcoin crashes under $36,000 levels, the next support levels will be at $29,000.
If we reclaim the range high at 41k, long and close at 49k. If we lose 36k, short to 29k.
We just have to wait for one of the triggers pic.twitter.com/e1Dx9RR6Gp
— Altcoin Psycho (@AltcoinPsycho) August 2, 2021
It’s certainly not all hunky-dory for Bitcoin investors from here onwards. The social and crowd sentiment for Bitcoin is still mildly bearish. Since crypto investors/traders are much active on the social media channel Twitter, the Bitcoin sentiment remains mildly negative based on the Bitcoin social volume & ratio of positive vs. negative comments.
Key On-chain Observations for Bitcoin (BTC)
The Adjusted SOPR (aSOPR) metric shows that since the May sell-off, a majority of on-chain spending has realized losses. The aSOPR value of 1 served as resistance. However, last week, the SOPR has rallied much higher with major profit realization on the Bitcoin blockchain.
With aSOPR bouncing higher, Glassnode reports that “the market has stopped realising profits (holding conviction remains) and absorbed the sell pressure”.
Another popular analyst Joseph Young explains that Bitcoin (BTC) is currently trading at levels back seen in February 2021. However, the futures market open interest is significantly low. As a result, Young calls it a “much healthier spot-driven recovery” and thus remains optimistic.
Bitcoin is where it was in February 2021.
Yet, the futures market open interest is significantly lower.
This is a much healthier spot-driven recovery.
— Joseph Young (@iamjosephyoung) August 2, 2021
The way Bitcoin has remained volatile over the last few years, it’s been much difficult to predict any future price actions. However, if you’re betting on Bitcoin’s long-term future, any price levels in the range of $30,000-$40,000 could be good for accumulation.