Bitcoin Slips, Exchange Reserves Falling Too: Here’s Why $55,000 Is Crucial For BTC Bulls

Dalmas Ngetich•Wednesday, August 28, 2024•1 min read

Bitcoin fell some more yesterday, extending losses of August 26. Even though there is hope, bears seem to be taking charge, at least for now. The primary resistance is the $63,000 level, while support lies in the $56,500 zone, following the complete reversal of August 23 gains. Despite the sell-off, there are multiple fundamental factors to explore, including inflows into spot ETFs as a demand-side driver.

As prices trickle lower, traders are cautious. In the past day, the coin is down nearly 7%, shaving losses week-to-date to almost 2%. Amid falling prices, the average trading volume in the previous 24 hours is also at $42 billion. This spike shows that traders are in the frame, possibly dumping.

Bitcoin Daily Chart for August 28

The following Bitcoin trending news are worth watching:

As Bitcoin prices fall, traders should closely monitor price action, especially at around the $55,000 level. This is the average price of most BTC traders on Binance. Accordingly, if broken, the coin could disintegrate due to panic selling.
Exchanges continue to contend with falling BTC reserves across all crypto exchanges. For this reason, either prices have to rise to spark short-term selling, or exchanges have to prop up dwindling supply with their assets.

Bitcoin Price Analysis

BTC/USD is in red at press time, moving lower.

Moreover, bears have reversed all gains of August 23.

Technically, this is bearish from a volume analysis preview. If prices are below this wide-ranging bull bar, aggressive traders can unload, targeting $56,500 and lower in the coming days.

If sellers double down, pushing losses, Bitcoin might fall to August lows of $50,000.

This outlook will only change if there is a refreshing push higher, ideally above $66,000. The surge will confirm the buyers of August 23, setting the base for more gains to $70,000 or higher.

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