Bitcoin Falls Below $28,700 as Spot Selling Drives Prices Lower
Bitcoin (BTC) fell below $28,700 after the Aug. 7 Wall Street open as “endless spot selling” drove BTC price action lower. This comes after a shaky weekly close and offers no signs of relief for bulls.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning nearer to its August lows. Traders and analysts were already predicting a downward outcome once the impasse broke.
Derivatives trading at a premium over spot placed bulls in an even less advantageous position. This, combined with the endless spot selling and choppy price action, is not what you want to see, warned popular trader Daan Crypto Trades.
DecenTrader, a trading suite, also warned that one of its proprietary trading tools had flipped bearish “across most timeframes.” Popular trader Crypto Tony noted that $29,000 was already weakening as support.
Bets on a drop into the Aug. 10 U.S. Consumer Price Index print were already on the table, something that would constitute classic BTC price action. Data from monitoring resource CoinGlass put total BTC long liquidations at over $10.5 million on the day, with cross-crypto long liquidations at $60 million.
Zooming out to weekly timeframes, popular trader and analyst Rekt Capital revealed an interesting showdown in the making for BTC/USD. Weekly candles were in the process of completing a double-top formation. To confirm this pattern, Bitcoin would need to revisit the area around $26,000, violating multiple key moving averages in the process.
However, Rekt Capital noted that the area between $26,000 and the current spot price could act as a confluence support region, potentially preventing a double top and allowing Bitcoin to print a weekly higher low and continue its upward movement.
Note: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
