Price analysis

Bitcoin may find buyers close to $56,000, benefitting select altcoins such as SOL, XRP, KAS, and AAVE.

Bitcoin (BTC) is in a free fall, breaking below the psychological $60,000 support on Aug. 4. Bitcoin came under intense selling pressure this week as traders reduced risk following the roughly 6% plunge in the Japanese stock market, Nikkei, on Aug. 2. The weaker than expected July jobs report on Aug. 2 did not help matters and the Nasdaq Composite fell into the correction territory, down more than 10% from its record high.

Even after the recent fall, Bitcoin remains stuck inside a large range. Although it is difficult to predict the direction of the breakout from a range, Bitcoin whales remain bullish. Whale addresses holding over 1,000 Bitcoin have added 84,000 Bitcoin in July. Also, nearly 64,000 Bitcoin left whale exchange balances in the past 30 days, the most since 2015, according to the whale net position change metric by Glassnode.

Bitcoin’s weakness has pulled several altcoins lower, indicating that the buyers are staying on the sidelines. However, as Bitcoin drops closer to the bottom of its range, buyers are likely to step in. That is expected to start a bounce in select altcoins.

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