Bitcoin loses $29K as traders flag key BTC price levels to watch next

Bitcoin (BTC) shed 2% into the start of August as traders’ expectations of further downside slowly came true. 

BTC/USD 1-hour chart. Source: TradingView

Bitcoin short-term holder breakeven point in focus

Data from Cointelegraph Markets Pro and TradingView showed BTC’s price trajectory leaning lower at the July monthly close.

Volatility was already anticipated, and BTC/USD did not disappoint after a week of barely any movement whatsoever. Bulls, however, were left in the cold.

For popular trader and analyst Rekt Capital, the close price was significant but demanded that buyers now step in to protect the trend.

Commenting on a chart showing relevant levels and Bitcoin’s potential moves, he flagged $29,250 as the line in the sand.

“Instead of BTC Monthly Closing above the ~$29250 level (black)… BTC printed a Monthly Close marginally below the ~$29250 level. BTC needs to reclaim ~$29250 as support for the blue path to be valid,” he wrote.

“However, there are some initial signs of the ~$29250 acting as resistance this month. If this persists then price could actually reject from here and drop lower via the red path. All about the black ~$29250 now.”BTC/USD annotated chart. Source: Rekt Capital/Twitter

Looking to short-term targets, meanwhile, many market participants acknowledged that the area around $28,000 should come in for a test.

In particular, $28,300 stood out, this being the cost basis of Bitcoin’s speculative investor base, known as short-term holders (STHs). These are defined by on-chain analytics firm Glassnode as entities hodling BTC for a maximum of 155 days.

“Fully expect Bitcoin to test the short-term holder cost basis, which is $28.3K. This would be the third time testing this support level this year,” James Straten, research and data analyst at crypto insights firm CryptoSlate, forecast on the day alongside Glassnode data.

Bitcoin long/short-term cost basis data. Source: James Straten/Twitter

As Cointelegraph reported, the STH cost basis has figured as support throughout recent months, with STH selling intensity likewise on the radar as a hurdle for bulls to overcome above $33,000.

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