Bitcoin failed to break the $43,000 resistance! Going down?

BTCNEXT
BTCNEXT
Aug 4, 2021 · 2 min read

Despite a hot weekend, Bitcoin has dropped below $40,000 again. Will we dive even lower or is there a chance to climb higher? Let’s find out with BTCNEXT’s price analysis.

20–31 July, 1–3 August main events

  • The difficulty of mining has increased. On July 31st, as the result of another recalculation, the difficulty of Bitcoin mining increased by 6.03%, reaching 14.5 T. This is the first increase in the indicator since May 13th, when it peaked at 25.05 T.
  • Regulators in Malaysia and India are hunting Binance. The Securities Commission in Malaysia announced an enforcement action against Binance. The agency ordered the company to disable the exchange website and its mobile application in the region. India is to scrutinize the role of Binance Holdings in a money laundering case.
  • USA enters the CBDC race. The US Federal Reserve System (FRS) believes that the country needs to “urgently” accelerate the development of the digital dollar.

Price analysis

The strong resistance was in the $40,585–43,000 range and we didn’t break it completely. Once Bitcoin breaks higher, the price will go up to $47,000–50,000 quite easily.

The Fear & Greed Index went up to 60 points, the market was overheating and we needed a correction. Withdrawals from exchanges went through the roof over the past week — 98,000 BTC was withdrawn from only one Kraken, devastating the exchange more than twice. In total, 115,000 Bitcoin has been withdrawn from all exchanges since July 27th.

In the near future, we should expect the market to fall with an opportunity to gain positions. We will then fly to $50,000. Note that liquidity has flowed into altcoins, which is a good thing for the market.

That’s all! If you want to continue receiving price analyses — stay tuned for more BTCNEXT updates!

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