Where Is The Bitcoin Price Heading? What Levels to Watch?

Bitcoin price still has “heavy support” at $28,000. Also, confidence is still in place that Bitcoin can avoid a deeper pullback. So, which Bitcoin support levels should I watch?

Bitcoin price drops to two-month low

cryptocoin.com As you follow, Bitcoin is struggling to avoid further losses this week. Because there is still a risk that an extended period of sideways trading will result in a crash. Also, Bitcoin price has been constrained by the resistance above $30,000 for a long time. According to the latest data, BTC price action looks increasingly volatile.

The latest Fed minutes have served to sharpen the game of Bitcoin bears. There has been a decrease in buyer interest. Thus, it sent BTC to a two-month low near $28,300. Now, traders and analysts are preparing for more tests of support, including levels not seen since the start of the year.

Bitcoin price 1-day chart. Source: TradingView

The classic Bitcoin bear market lifeline is back on the map

The peak approaching $28,000 has put major long-term trend lines back into focus for Bitcoin market watchers. Among them is James Straten, research and data analyst at crypto analytics firm CryptoSlate. According to him, both the 200-day and 200-week simple moving averages (SMAs) are lines in the sand for the bulls.

The 200-week SMA is a classic support line during periods of bearish Bitcoin price pressure. Also, losing is a phenomenon that characterizes the trough of Bitcoin bear markets. However, 2022 has been the longest period when Bitcoin has remained below the 200-week SMA. Analysis this month reveals that maintaining the key trendline will be a factor allowing BTC price performance to return to “full bullish” next month.

BTC 1-week chart with 200 SMA. Source TradingView

Trendline cluster lurks above $27,000!

The importance of the current Bitcoin spot price range becomes apparent when viewed from the perspective of support trendlines. Various trend lines, including simple (SMAs) and exponential (EMAs) moving averages, are currently clustering between $27,000 and $28,600.

The short-term 100-day SMA is currently being tested as support as part of the August 17 daily candle.

$28,000 is still a “heavy” support for bitcoin price

Meanwhile, on a psychological basis, $28,000 remains firmly in the eyes of the market. According to popular trader CryptoCon, there is no need to worry about a significant crash at the lower levels. Also, other “bullish supports” will likely hold up against the Bitcoin bears. In this context, the trader makes the following statement:

Bitcoin is down $700 and the bears are in euphoria. Meanwhile, healthy bullish supports are completely intact. $28,000 remains heavy support on all time frames. Will these bullish supports hold up? I think so!

Bitcoin price caption chart. Source: CryptoCon

CryptoCon builds his forecast on an existing comparison with the price of Bitcoin in 2015-2016, when the market set the stage for a bull run towards the $20,000 high of the last cycle.