Bitcoin faces ‘endless spot selling’ as BTC price dips below $28.7K

Bitcoin

Bitcoin (BTC) fell below $28,700 after the Aug. 7 Wall Street open as “endless spot selling” drove BTC price action lower.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin traders brace for losses as $29,000 support breaks

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning nearer to its August lows after a shaky weekly close.

The start of United States trading offered no signs of relief for bulls after a weekend of sideways behavior, with traders and analysts already predicting a downward outcome once the impasse broke.

Commenting on the situation, popular trader Daan Crypto Trades noted that derivatives trading at a premium over spot placed bulls in an even less advantageous position.

“There being a Perpetual pair premium vs Spot is really never a good sign. Combined with the endless spot selling + choppy price action is not what you want to see. Be careful out there,” he told Twitter followers.

BTC/USD with perpetual futures basis chart. Source: Daan Crypto Trades/Twitter

Trading suite Decentrader warned that one of its proprietary trading tools had flipped bearish “across most timeframes,” while earlier, popular trader Crypto Tony said that $29,000 was already weakening as support.

“Losing $29k support. The slow bleed continues as people refuse to see the weakness in the markets,” trading team IncomeSharks added.

Bets on a drop into the Aug. 10 U.S. Consumer Price Index (CPI) print were already on the table — something which would constitute, should it play out, classic BTC price action.

Data from monitoring resource CoinGlass put total BTC long liquidations at over $10.5 million on the day. Cross-crypto long liquidations stood at $60 million.

Can BTC price avoid a 2023 double top?

Zooming out to weekly timeframes, meanwhile, popular trader and analyst Rekt Capital revealed an interesting showdown in the making for BTC/USD.

Related: BTC price meets CPI as volatility ‘collapses’ — 5 things to know in Bitcoin this week

Weekly candles were in the process of completing a double top formation, he noted in a YouTube update on the day, with confirmation due within the next month.

To print the classic M-shaped pattern, however, Bitcoin would need to revisit the area around $26,000 — something which would require violation of multiple key moving averages.

These included the 200-week simple moving average (SMA), as well as the 21-week and 50-week exponential moving averages (EMAs).

“The thing about this structure overall and generally this region acting as a confluence support region is because we also have two bull market bullish momentum exponential moving averages developing here,” he said about the area between $26,000 and current spot price.

That support cluster, Rekt Capital added, could end up being what “really gets in the way” of a double top, and instead allows Bitcoin to print a weekly higher low and continue upward.

BTC/USD 1-week chart with 200SMA; 21, 50EMA. Source: TradingView

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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