Bitcoin Drops $29K as Traders Note Key BTC Price Levels to Monitor

Bitcoin (BTC) dropped 2% at the start of August, as traders’ predictions of a further decline were slowly materializing.

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Bitcoin short-term holder breakeven point in focus

Data from Cointelegraph Markets Pro and TradingView revealed that BTC price trajectory was leaning lower at the July monthly close.

Volatility was already expected, and the BTC/USD pair didn’t disappoint after a week of minimal movement. Unfortunately, the bulls were left behind.

For popular trader and analyst Rekt Capital, the closing price was significant, but he emphasized that buyers must now step in to protect the trend.

Commenting on a chart showing relevant levels and Bitcoin’s potential movements, he noted $29,250 as the line in the sand.

“Instead of BTC Monthly Closing above the ~$29250 level (black)… $BTC printed a Monthly Close marginally below the ~$29250 level. BTC needs to reclaim ~$29250 as support for the blue path to be valid,” he wrote.

Looking at short-term targets, many market participants pointed out that the area around $28,000 should be tested. In particular, $28,300 was highlighted, which is the cost basis of Bitcoin’s speculative investor base, known as crypto short-term holders (STHs). According to on-chain analytics firm Glassnode, these are entities that hodl BTC for a maximum of 155 days.

“Fully expect Bitcoin to test the crypto short-term holder cost basis, which is $28.3K. This would be the third time testing this support level this year,” James Straten, research and data analyst at crypto insights firm CryptoSlate, forecasted along with Glassnode data.

As Cointelegraph reported, the STH cost basis has been a support throughout recent months, with STH selling intensity also being a challenge for bulls to overcome above $33,000.

Key BTC price moving average inches closer

Continuing, popular trader Titan of Crypto described $28,300 as the “level to watch” for the coming week.

Daan Crypto Trades meanwhile eyed the 200-week moving average (MA) — a classic bear market support level — as a point of interest should further downside ensue. The 200-week MA stood at $27,235 as of Aug. 1.

“During this year, the Daily 200MA/EMA have proven to be a strong support for Bitcoin,” he told Crypto Today YouTube followers.