Bitcoin's Dominance Tested: BTC Drops to $29,300 Threshold

Bitcoin’s Dominance Tested: BTC Drops to $29,300 Threshold – Analysts Discuss Its Next Chapter

Updated: 02 May 2024

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Bitcoin (BTC) has been stuck within a tight range between $29,000 and $30,000 over the last few days as price volatility has decreased. However, the technical setup reveals a possible bullish move soon.

At press time, the big crypto is trading at $29,791, down 0.1% over the last 24 hours. With a $9.67 billion daily trading volume, Bitcoin boasts $571.4 billion in market capitalization, reinforcing its top position on the CoinMarketCap ranking.

However, Bitcoin market dominance is being tested as it remains flat at around 48.75%, a level it has maintained over the last month.

Bitcoin Bulls Must Reclaim $30k to Secure Upside

BTC price is a new battleground as buyers and sellers fight for control above the $29,300 level. One Bitcoin analyst on X (formerly Twitter) observed this horizontal movement in the price falling below a critical support level that BTC needs to reclaim.

#Bitcoin All the levels I'm watching.

Pretty clear that the $29.5-29.7K region is an area that's strongly contested by the bulls and bears.

It's an important area to keep watching. pic.twitter.com/XgYLth26d0

— Daan Crypto Trades (@DaanCrypto) August 11, 2023

This is the culmination of the price oscillating around the current level, making the midpoint the group to watch next. The sideways price movement has persisted since mid-June, with the pioneer cryptocurrency trading between the $28,500 support and $31,800 resistance.

As seen on the daily chart below, the price volatility has decreased as BTC nears a breakout. This is evidenced by the narrowing of the Bollinger Bands (BB) as the price consolidates above the middle boundary of the BB at $29,593. Note that as the Bollinger Bands continue squeezing toward each other, the possibility of a breakout in either direction increases.

The flattening SMAs also support the decreasing price volatility. The Relative Strength Index (RSI) position at 50 also suggested that the buying and selling pressure was balancing out.

It remains unknown which direction Bitcoin price will take, considering the neutral conditions prevailing in the market.

BTC/USD Daily Chart

Bitcoin Price Chart - August 12 — TradingView Chart: BTC/USD

However, traders seeking to buy Bitcoin may want to wait until the price breaks and holds sustainably above the $30,000 level. Note that this is a fundamental level as it is embraced by the 50-day Simple Moving Average (SMA), the Bollinger Band’s upper boundary, and the descending trendline.

Such a move would mean that the ongoing downtrend has ended and that the Bitcoin price is poised to rally not just to $32,000 but toward $40,000. This would represent a 34% uptick from the current price.

This positive outlook was supported by insights from an X user, Captain Faibik, who said BTC’s uptrend will continue. He posted a chart showing the Bitcoin price breaking out from a falling wedge setting the upside target at $33,000.

$BTC Upward trend Continues with a Breakout from a Falling Wedge and ongoing Retest.

A Successful retest could lead to a bullish run towards 33k.

If the Daily Candle Closes Under 29k, a Retest of 26k Support might Occur.#Crypto #Bitcoin #BTC pic.twitter.com/2UPJSo71sh

— Captain Faibik (@CryptoFaibik) August 11, 2023

On the longer timeframe, crypto trader and analyst Rekt Capital is bullish on Bitcoin, saying that the digital asset is in a “macro uptrend” that will eventually take “BTC to new all-time highs.”

Let's not forget #BTC is in a new macro uptrend

Yes, there will still be corrections

But over time, the macro uptrend will take BTC to new All Time Highs$BTC #Crypto #Bitcoin pic.twitter.com/c9eDG2vqU7

— Rekt Capital (@rektcapital) August 11, 2023

On the downside, a daily candlestick close below the lower band of the BB will confirm a downward move, with the 100-day SMA at $28,663 providing the first line of defense. Other key levels to watch are the 200-day SMA at $27,226 and the $26,000 psychological level.

BTC Alternatives

Amidst the neutrality surrounding the potential of BTC prices to surge, a new cryptocurrency has entered the market. XRP20 has emerged as an innovative Ethereum-based ERC20 token that has captured investor attention.

With its current valuation at $0.000092, XRP20 distinguishes itself through unique attributes and the potential for substantial gains, drawing inspiration from Ripple (XRP).

https://twitter.com/XRP20AMA/status/1689622530053578753?s=20

Separating itself from the array of XRP ‘2.0 versions,’ XRP20 redefines utility within the XRP domain by introducing a pioneering staking mechanism. Purposefully designed to reward token holders generously, this mechanism has garnered interest from XRP enthusiasts and the broader cryptocurrency community. It presents opportunities for passive income generation and

XRP20’s token economics closely resemble the original XRP, featuring a fixed supply of 100 billion tokens. This distribution includes 40% allocated to public presale engagement, another 40% dedicated to staking, 10% permanently burned to increase scarcity, and a final 10% earmarked for the initial DEX liquidity pool. \

While staking assumes a prominent role, the potential for real-world applications further enriches XRP20’s investment potential as the project develops.

XRP20 is currently in presale and has already amassed a remarkable $2.163 million, presenting an enticing chance for substantial gains. Interested buyers can visit the XRP20 platform, connect their wallets, and purchase using Ethereum (ETH) or USDT.