Bitcoin Price Prediction for August 29: Bears Take Control

Bitcoin's price has declined by 2.55% over the last day, with the rate breaking the support of $109,823. If the bar closes below this mark, it may drop to the $105,000 area. From a midterm perspective, there are no reversal signals yet, and if bulls lose the interim zone of $110,000, traders may witness a test of the $100,000-$105,000 range.

Title: Bitcoin's Recent Price Drop: Key Levels and Technical Analysis

Bitcoin (BTC) has experienced a significant decline over the past week, with its price dropping to its lowest level in seven weeks on Tuesday. The digital currency fell to $108,700, marking its lowest point since July 9, as reported by Investopedia [1]. This decline comes after a period of strong gains, with Bitcoin hitting a record high of above $124,000 on August 14.

The recent price drop has been attributed to several factors, including large investor liquidations and increased outflows from Bitcoin ETFs. Additionally, the Federal Reserve's potential interest rate cuts have put pressure on the cryptocurrency market. The legacy cryptocurrency has fallen about 12% since its record high, highlighting the volatility in the market.

Technical analysts have identified key support and resistance levels that investors should watch closely. According to Investopedia, the first support level to monitor is around $107,000. This level could attract buying interest and potentially flip from prior resistance to future support [1]. Another key support level is around $100,000, which is just below the upward sloping 200-day moving average (MA).

Resistance areas worth monitoring during possible recovery efforts include the $117,000 level. This area could encounter selling pressure near last week’s failed retest of the 50-day MA and a sideways trend that formed on the chart in the second half of July [1]. A bullish reversal back to the upside may spark a rally toward $123,000, according to the same source.

Cointelegraph reports that Bitcoin may see a deeper correction toward $103,000 if it fails to close the week above $114,000 [3]. This level has supported the price over the previous six weeks, and flipping it into support could confirm the strength of the uptrend. However, if Bitcoin drops below this level, it could trigger a decline toward $103,700, representing a 6% decline from the current level.

Bitcoin traders are on alert as technical analysts suggest the market may be entering a short-lived relief phase before a sharper correction begins. Analysts point to a Wave 2 rebound that could lift prices briefly before a sharper correction begins. The asset has been struggling to maintain momentum after its recent all-time high, fueling speculation over the next major move [4].

The current price of Bitcoin hovers at $111,225, with a 24-hour volume of $33.8 billion, according to CoinGecko. Analysts are tracking the potential Wave 2 relief rally, which could hit $118,000-$122,000 before a deeper fall. Dr. Cat sees a 50% chance that Bitcoin has already topped for 2025, citing long-term wave patterns [4].

Key support levels for Bitcoin correction are projected at $93,000 and $77,000 if Wave 2 resistance holds. Bitcoin traders are on alert as technical analysts suggest the market may be entering a short-lived relief phase. The asset has been struggling to maintain momentum after its recent all-time high, fueling speculation over the next major move. Some analysts point to a Wave 2 rebound that could lift prices briefly before a sharper correction begins. The discussion has gained traction across crypto trading circles, with attention shifting to resistance levels. Market watchers are weighing whether this bounce will give altcoins room to run [4].

References:
[1] https://www.investopedia.com/watch-these-bitcoin-levels-as-price-drops-below-usd110000-for-the-first-time-since-early-july-11797438
[2] https://www.ainvest.com/news/bitcoin-price-volatility-concern-portfolio-investors-2508/
[3] https://cointelegraph.com/news/bitcoin-traders-btc-must-close-week-above-114k-ugly-correction
[4] https://blockonomi.com/bitcoin-price-faces-wave-2-relief-before-possible-deeper-correction-to-93k-expert/