Bitcoin BTC Falls to Lowest Level Since February: Blockstream CEO Advises Buying the Dip

Bitcoin (BTC) has experienced a significant drop to its lowest level since February, leading to panic selling among investors. However, Blockstream founder and CEO Adam Back has reassured traders that drawdowns are a normal pattern in a bull market and advised them to buy the dip instead of panicking.

The panic selling was triggered by the liquidation of the German government’s Bitcoin holdings and the expectations that Mt. Gox creditors will also monetize their repayments. Finance analyst Jacob King stated in a post that most of Mt. Gox’s former creditors are likely to sell their holdings, adding to the selling pressure in the market.

According to CoinGlass data, cryptocurrency liquidations over the past hours have reached over $100 million, the highest in two months. Analysts anticipate the selling pressure to continue, with Bitcoin potentially dropping to critical support levels.

Bitcoin’s price analysis shows that the large range between $30,000 and $40,000 broke down in July. The bulls are now attempting to reclaim the $30,000 level, with oversold levels on the relative strength index (RSI) indicating a possible relief rally in the near term. However, if the price turns down from the 50-day exponential moving average (EMA), the bears may target the $20,000 to $25,000 support zone.

Ether (ETH) has also been trading inside a large range between $1,800 and $2,400 for several days. Aggressive selling by bears pulled the price to the support of the range at $1,800, with the RSI dipping into oversold territory. A relief rally is possible in the near term, but if the price turns down from the 50-day EMA, the risk of a break below $1,800 increases.

BNB easily sliced through $300 and $250 support levels in July, signaling aggressive selling by bears. The bulls have not allowed the price to break below $200, with oversold levels on the RSI suggesting a potential recovery. However, if the price turns down from the 50-day EMA, the bears may attempt to sink the BNB pair below $200.

Solana (SOL) failed to break above the 50-day SMA, attracting selling pressure in July. The price dropped close to the $25 support level, with the bulls likely to protect it again. A bounce may face selling at the 50-day EMA, with a breakdown potentially leading to a decline to $20.

XRP nosedived below $0.60 support in July, followed by a solid down move below $0.50. The long tail on the chart indicates potential support, but a break below $0.50 could lead to further downside for XRP.

Overall, the cryptocurrency market is experiencing significant volatility, with Bitcoin and altcoins facing selling pressure. Traders are advised to closely monitor critical support levels and market trends to make informed decisions in this challenging environment.