Yesterday, Bitcoin dropped to a weekly low of $28,710 but promptly returned within its established sideways range. Explore the current market analysis for Bitcoin and Polkadot as of Tuesday, August 8.
Bitcoin (BTC)
The asset has reverted to a sideways trend, fluctuating between the support and resistance levels of $29,250-$29,450, which were tested earlier today.
Currently, neither buyers nor sellers display urgency to escape this consolidation. The primary resistance zones with notable sell orders remain at $29,700-$30,100 and $30,400. Most of the buy orders have been placed around the $28,000 level. With impending economic announcements scheduled for Thursday, volatility in the leading cryptocurrency will probably remain muted.
BTC chart on the H1 timeframe
Polkadot (DOT)
DOT has been in a downward trend for over a year. This bearish sentiment persists on lower timeframes. The asset is currently trading within the support zone of $4.83-$4.93. If this range fails to hold the price, we might see a drop toward the levels of $4.75 and $4.65. Given the consistent pattern of reaching new lows, a continued decline appears to be the most likely scenario.
To reverse this trend, buyers would need to break through several key resistance clusters, specifically at $5.05, $5.2-$5.33, and $5.5. With significant DOT releases expected during forthcoming parachain auctions, aligning trading strategies with the ongoing bearish trend seems prudent.
DOT chart on the H3 timeframe
Currently, the online community is buzzing with FUD concerning the potential insolvency of various crypto exchanges and businesses. Such events are undoubtedly setbacks for the industry. However, unlike the FTX debacle, the closure of trading platforms might encourage users to hold onto their assets and store them in their wallets instead of selling them. Therefore, it's crucial to approach all news with a discerning eye and consider its implications when making trading decisions.
Check out GNCrypto for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNCrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNCrypto:
