Bitcoin (BTC) is struggling to avoid further losses this week due to the risk of a collapse after a long period of horizontal trading. According to data obtained, the BTC price movement, which has long been squeezed with resistance above $30,000, is becoming increasingly unstable.
The latest Federal Reserve minutes, released on August 16, served the Bitcoin bears sharper and directed the buyer side interest towards the $28,300 target, the lowest level in two months for the BTC/USD pair.
Considering the tight trading range in effect since June, the drop was significant even though it was less than $1,000 in total in terms of the US dollar. Investors and analysts may be preparing for further support tests, including levels not seen since the beginning of the year. The peak near $28,000 brought long-term major trend lines back into focus for Bitcoin market observers.
However, James Straten, a research and data analyst at the cryptocurrency analytics firm CryptoSlate, also expressed his views. According to the expert, both the 200-day and 200-week simple moving averages (SMA) are classical support lines when the BTC price pressure drops, and losing the region could be a phenomenon characterizing bear markets in Bitcoin.
However, the year 2022 saw Bitcoin’s longest spell below the 200-week SMA. Analysis conducted this month predicted that maintaining the main trend line would be one of the factors that would enable BTC price performance to turn into a “full bull” next month. The importance of the current Bitcoin spot price range emerges in terms of support trend lines. Additionally, analyst CryptoCon based a comparison with the BTC price in 2015-2016, where the market prepared the ground for a bull run towards the $20,000 peak of the last cycle.