Bitcoin (BTC) and altcoins are currently displaying divergent price dynamics across various timeframes, while Ethereum closely tracks Bitcoin’s movements. Both cryptocurrencies are steadily gaining ground as the market eagerly awaits the release of the Consumer Price Index (CPI) reading on July 12. As of the time of writing, Bitcoin is trading at $30,690.
Crypto Rover, an industry analyst, has indicated that Bitcoin is showing signs of an impending breakout, as historical volatility reaches unprecedented lows. For the past 18 to 19 days, Bitcoin has been trapped within a sideways consolidation phase. Unless it breaks the above-established support and resistance levels, the cryptocurrency is likely to continue trading sideways.
“We can observe that Bitcoin is currently approaching its most crucial resistance level, and the question that remains is when will it surpass the $31,000 mark. Once this breakout occurs, I personally believe it will reignite the bull market for Bitcoin,” said Crypto Rover.
In the event of a breakout, Bitcoin’s price could potentially reach a target of $31.5K, corresponding to the upper range high. However, a significant hurdle is anticipated at the $31.2K resistance level. On the downside, a breakdown would target $28.5K.
Crypto Rover also emphasized that altcoins face potential risks and may not exhibit the same strength as Bitcoin. One noteworthy altcoin in this context is Solana, which is displaying signs of weakness within a broader downtrend. Historically, during bear markets, Bitcoin tends to dominate as altcoins encounter selling pressure.
“In the current bullish scenario, we find ourselves at the same lows as in January 2023. We all recall what happened after that. Bitcoin’s price action was stagnant and tightly squeezed, leading to a significant rally of over fifty percent in just a few days. Thus, Bitcoin is once again poised for substantial volatility.”
As the market awaits the CPI reading, Bitcoin’s proximity to a crucial resistance level holds the key to its future trajectory. A breakout could ignite a renewed bull market, whereas failure to breach the resistance may prolong the sideways trend. Altcoins, however, face vulnerability amidst the potential selling pressure they typically experience during bear markets. As volatility looms, all eyes are on Bitcoin to gauge the market’s direction in the coming days.
Source: https://coinpedia.org/bitcoin/bitcoin-price-today-btc-price-approaches-key-resistance-level-amidst-anticipation-of-cpi-report/