Bitcoin price dips below $38K with bullish traders eyeing a new higher low next

The hunt to establish firm support higher up the $30,000 channel continues amid confidence that the worst of the longer-term retracement is already over.

Bitcoin (BTC) briefly fell below $38,000 on Aug. 3 as signs of a retracement from range highs continued to flow in.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Caution before BTC price swing lower

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD tapping $37,960 on Bitstamp before rebounding.

Still trading 3.7% lower on the day, the pair had come off local highs above $42,500 at the weekend amid concerns over regulatory moves from the United States this week.

As Cointelegraph reported, analysts were already hoping that a correction would take Bitcoin several thousand dollars lower in order to create a higher low, from which it could continue its upside.

The target zone, lying around $36,000, was now key to hold in order to prevent what trader Pentoshi called “worst-case scenarios.”

“Deviations wrecking those people who don’t plan for them,” he warned Twitter followers alongside a chart showing key price levels.

“I’ll bid on range high reclaim OR in the grey box for a HL. If we fall below the mid range and start closing below then you need to plan for some worst case scenarios. These are my only two triggers for a long (at the moment).”

BTC/USD target chart. Source: Pentoshi/ Twitter

Exchange levels differed only slightly from that hypothesis on Tuesday, with major support lingering at $35,000 on Binance.

Resistance was in place at $41,000, with the range high of $42,500 now of major interest among sellers.

BTC/USD buy and sell levels (Binance) as of Aug. 3. Source: Material Indicators/ Twitter

Analyst: Bitcoin retrace “has happened”

Zooming out, meanwhile, fellow trader and analyst Rekt Capital found sense in longer-term price action, potentially reinforcing $29,000 as a floor.

Related: Price analysis 8/2: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LINK

On a yearly timeframe within four-year cycles, $29,000 has provided support in 2021, placing post-halving behavior firmly in historical context.

Others had also taken heart from Bitcoin’s July turnaround and monthly close, among them stock-to-flow price model creator PlanB.

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