Impending Range Breakout Signals Potential Surge to $34,000

For over a fortnight, the leading cryptocurrency Bitcoin has been trading in a sideways trend resonating between $31250 and $29640. Despite the recent volatile sentiment in the market when the U.S. SEC expressed inadequate application for spot Bitcoin ETF, the coin price respected this range and stayed within boundaries. Therefore, this validated chart setup can be used to determine near future prospects of BTC price.

Also Read: Coinbase ($COIN) Price Jumps By 12% As BlackRock Files For Bitcoin ETF Again

Bitcoin Price Daily Chart

• Range formation offers buyers an opportunity to recuperate bullish momentum and prolong a bullish rally.
• A breakout above $31250 could set BTC for a quick 5% rise.
• The intraday trading volume in Bitcoin is $11.76  Billion, indicating a 27.5% loss.

Source-Tradingview

On July 4th, the BTC price turned down from the range resistance level of $31250. This rejection reflects a fresh signal of reversal within the range, and also the continuation of sideways.

As of now, the Bitcoin price trades at $30575 with an intraday loss of 0.96%. The red candle printed today has breached below yesterday’s low, offering a suitable confirmation for price reversal.

The potential downfall could lead the coin price to 3% down to hit the range support of $29640. Interested traders can enter this pullback to accumulate BTC before the next leap.

However, even with a breakdown below $29640 support, the traders can maintain a bullish outlook until the buyers sustain the 50% retracement level near $28230. 

Will Bitcoin Price Reach $34000?

The Bitcoin price entered this range following a massive rally during the second half of June. Such consolidations are common in trending markets as it’s also the buyers to rest before resuming the bullish rally. Thus, the coin price has a higher chance to break the $31250 barrier, offering buyers a solid footing to rise towards the next resistance of $33000, followed by $34850.

• Relative Strength Index: The daily-RSI slope falling reflects weakness in bullish momentum and therefore a possibility for long consolidation.
• Exponential Moving Average: The 20-day EMA slope wavering close to $29640, increases the support strength in this level.