#Bitcoin price dropped below $29,000 but soon regained the critical zone. Alright what now? There is serious pressure on risk markets, and crypto is feeling it even more. Despite the 2 percent recovery in the dollar index, BTC and altcoins lost important support levels. Here are the next scenarios.

Bitcoin (BTC)

The #BTC price dropped below $29,000 today, showing everyone that the bears are in control. The inability to hold on to higher levels prompted short-term investors to turn to profit-taking. Now the size of short positions is starting to increase.

Although there is a downward trend in the short term, long-term investors are not affected by this situation and continue to maintain their positions. Glassnode data says that Bitcoin's long-term investor supply has reached a new peak with 14.52 million Bitcoins, "equivalent to 75% of the circulating supply." Although the short-term enthusiasm increased by b applications has weakened, investor optimism continues in the long term.

Now, while cryptocurrencies are performing negatively, stock markets look relatively strong. Dow Jones rose for 10 days in a row, the longest streak since 2017. However, things could change this week with a series of major earnings reports and the Federal Reserve's policy decision on July 26.

Bitcoin Current Price Analysis

Bitcoin bulls pushed the price back above the 20-day EMA ($29,957) on July 23, but the long wick on the candlestick suggests strong selling at higher levels. The selling intensified today and the price sank below the strong $29,500 support that has been held for the past few days. We have been talking for days that lower bottoms could be seen in case of a loss of the $ 30,400 and $ 29,700 levels.

If the price turns up from the current level and breaks above the 20-day EMA, it will indicate that the breakout could be a bear trap. The pair could then rise to $31,000. Conversely, if the price continues to decline and breaks below the 50-day SMA, it will indicate that the bulls have given up. The pair then declines to $27,500. The next target will probably be $26,000. This situation is supported by accumulated short positions. The Fed has not announced a surprise decision so far, but if the interest rate is not increased on Wednesday evening, contrary to expectations, an upward movement may begin. In the normal scenario, the possibility of a short-term decline is stronger.