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Bitcoin (BTC) is encountering a new arena as bulls and bears vie for dominance in a sideways market, according to a well-known trader.
In his recent analysis on X (formerly Twitter) dated Aug. 11, Daan Crypto Trades identified a crucial level that needs to be reclaimed as support for the BTC price.
“Heavily contested” BTC price range poised for scrutiny
With BTC price breakouts consistently failing, both Bitcoin bulls and bears find themselves in a “heavily contested” range, Daan Crypto Trades noted.
This situation arises from multiple fluctuations above and below the current spot price, making the midpoint the next critical level to monitor.
The current state has largely remained unchanged since mid-June — with $28,500 acting as fundamental support and $31,800 as resistance.
Securing control of the area around $29,700 is therefore a vital step if bulls aim to generate the necessary momentum to alter the market dynamics permanently.
“It’s quite evident that the $29.5–29.7K zone is an area that’s heavily contested by both bulls and bears,” Daan Crypto Trades remarked.
“It’s a significant area to keep an eye on.”
BTC/USD annotated chart. Source: Daan Crypto Trades/X
An accompanying chart illustrated that BTC/USD is still striving to rise above the range low, with minimal significant historical support levels between $28,500 and $29,500.
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This analysis aligns with other viewpoints from recent weeks, which similarly emphasize $28,500 or slightly lower as a potential downside target.
Bitcoin traders contend on exchanges
Shifting focus to short-term BTC price movements, fellow trader Skew emphasized the intense activity currently taking place in the mid-$29,000 range for Bitcoin.
Related: Bitcoin risks 15% dip by October, but $100K is due in 2026 — Analysis
Exchange transactions revealed large-volume bids absorbing selling pressure on Aug. 11.
$BTC
and now they're puking the bag lol https://t.co/XkGxu5OsEf pic.twitter.com/fpqf5PmzIC— Skew Δ (@52kskew) August 11, 2023
Furthermore, Skew characterized the spot price action on four-hour timeframes as “weak,” despite remaining above several exponential moving averages (EMAs).
“Tight price compression here, likely a 5% + price reaction is imminent from this point,” he added.
BTC/USD annotated chart. Source: Skew/X
Magazine: Deposit risk: What do crypto exchanges really do with your money?
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any decisions.
