The zest with which the markets saw July end has not been reciprocated in the beginning of August. Bitcoin is down by 1% in the last 24 hours. GlobalBlock analyst Marcus Sotiriou says the reason for this might be because the markets anticipated bad news.
Some analysts are of the opinion that bitcoin’s price drop could be attributed to geopolitical tensions, such as the fear that Nancy Pelosi, the U.S. House of Representatives Speaker, planning a visit to Taiwan is intensifying the already present tension between Washington and Beijing. This anticipated tension has seen investors attempt to reduce their exposure to risk assets.
Bitcoin fell below $24,000. It entered a bearish zone and is now trading below the $23,500 level and the 100 hourly simple moving average. The current resistance is now at the $23,300 level and if it goes below this level then it could continue to move down. The next major support is near the $22,680 level.
If bitcoin experiences more losses we could see the price falling down to $22,000. But if it clears the next major resistance which is at $23,750 then we could see an attempt to start another rally.
Carl Runefelt on his YouTube channel talked about how he believes that bitcoin has already bottomed out. He used a chart to show that bitcoin might be in the bear market of its fourth major cycle. At the end of this bear market, when the price reaches the lowest level, he expects another bull run and bitcoin entering its fifth cycle.
He states that bitcoin’s price is very close to the bottom of the current bear cycle and may have even bottomed out already, and the next cycle may see bitcoin’s price rise as high as $280,000 and even reach $1 million by 2025.
