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Bitcoin price dropped back below $39,000, could it again attract buying?

Bitcoin price has dropped back below $39,000, suggesting that short-term traders are taking profits after the price failed to close above the $42,451.67 resistance. Meanwhile, Ether looks to extend its record daily winning streak in the run-up to a planned upgrade on Ethereum’s blockchain that could significantly reduce the cryptocurrency’s supply growth. At press time, BTC is changing hands at $38,936, while ETH still holds above the critical $2,550 level.

bitcoin-price-dropped-back-below-39000-could-it-again-attract-buying

BTC/USD 4-hour chart | Source: TradingView

Does Bitcoin price underperform Ether?

In the case of BTC, the good news is that lower levels could once again attract buying, as seen at the end of July. As AZCoin News reported, according to Santiment, the amount of Bitcoin held on addresses storing 100-to-10,000 BTC hit 9.23 million BTC as of Aug. 1, which is a new all-time high for this group of investors. The previous all-time high took place on April 5, just one week before Bitcoin price broke an all-time high above $64,000.

Moreover, in the face of ongoing regulatory proceedings in China, buyers are still defiant. As AZCoin News mentioned, the People’s Bank of China (PBoC) said it would keep applying high regulatory pressure on crypto trading, mostly due to concerns about financial risk. Furthermore, perhaps the fact that he tU.S. Senate is also advancing a $1 trillion infrastructure bill with a crypto tax provision, which could be a source of market anxiety.

At the moment, Bitcoin is still being perceived as bearish by the Twitter community, according to BTC’s social volume & ratio of positive vs. negative comments. However, it’s a good sign for bulls, as prices rise when crowds expect downward movement.

bitcoin-price-dropped-back-below-39000-could-it-again-attract-buying[1]

Source: Santiment/Twitter

In contrast to BTC, Ethereum is seeing a resurgence of chatter over the past 48 hours, as crowd awareness & interest has grown significantly after its cross above $2,500. But, this is again a bearish signal because social volume spiking too quickly is a sign of price direction shifts.

bitcoin-price-dropped-back-below-39000-could-it-again-attract-buying[2]

Source: Santiment/Twitter

Aside from Bitcoin’s price recovery from $30,000, ETH may have received a boost from Ethereum’s upcoming 11th backward-incompatible upgrade, or hard fork, slated to happen on Aug. 4.

Elsewhere, when BTC and ETH, and other altcoins picked up the pace, DOGE started slowing down. Is DOGE losing its sheen and worth? Over the past 13 days, DOGE has shown only a relatively small gain of 20%, while BTC is up 31% and ETH is up 44% in the same time period.

bitcoin-price-dropped-back-below-39000-could-it-again-attract-buying[3]

Dogecoin Average investor sentiment | Source: Santiment

At the moment, DOGE is only trading around $0.2, recording a 2% decline in line with the market trend. Perhaps it is only thanks to Elon Musk’s tweets that this memecoin can increase in price.

Finally, as AZCoin News reported, Coinbase Pro announced the listing of Alchemy Pay (ACH), PlayDapp (PLA), and Rai Reflex Index (RAI). This announcement has resulted in over 120% for ACH, bringing the token to trade at $0.009461.

bitcoin-price-dropped-back-below-39000-could-it-again-attract-buying

ACH/USDT 4-hour chart | Source: TradingView

Meanwhile, PlayDapp (PLA) also posted an admirable gain of 55% over the past 24 hours, trading at $0.71 at press time. The Reflex Index (RAI) is slightly worse when there has not been a price explosion after the announcement.

The overall cryptocurrency market cap now stands at $1,587 trillion, while Bitcoin Dominance is 46.1%.

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