Is the BTC Correction Over? BTC & ETH Analysis for August 2, 2023

The leading cryptocurrency has managed to secure its position above the $29,000 mark. The market's response comes in the wake of MicroStrategy's quarterly report, which disclosed additional Bitcoin purchases made in July by the world's leading institutional BTC holder. 

Although buyers have demonstrated their might, the surge was contained within the resistance zone between $29,700 and $30,100. Presently, Bitcoin is trading between this resistance level and the support zone of $29,100 to $29,300. The eventual departure from this bracket will set the tone for BTC investors' future outlook.

If the buyers manage to swiftly break through the $29,700-$30,100 zone, we could consider the correction phase over. In this case, BTC might set a target of $32,000, with the potential to outstrip its annual high.

On the other hand, a significant drop below $29,000 could throw this scenario off course. In such a case, Bitcoin might risk a deeper correction, possibly reaching the support zone between $26,700 and $28,000.

Despite the substantial correlation between the two assets, Bitcoin's recent surge hasn't substantially impacted Ethereum's rate. The coin consistently trades between a support zone of $1,805-$1,835 and a resistance zone of $1,905-$1,930. The benchmark of $1,885 could also be viewed as an intermediary resistance point.

If BTC maintains its upward trajectory, ETH could swiftly ascend to the $1,973-$2,026 area, with the potential to surpass the local high. Conversely, a downturn in Bitcoin could lead ETH to slide towards the $1,725-$1,770 range.

Bitcoin has made a significant upward stride, pushing the volatility index up to the 1.85 mark. The key concern now is whether the bulls have enough strength to extend this surge and turn this immediate triumph into a broader victory.

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Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the Gagarin News editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.

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.

This analysis was informed by the following educational materials and articles from Gagarin News: