Published 3 hours ago
Bitcoin Price Analysis: For nearly a month, the Bitcoin price has been trading sideways between the horizontal level of $31500 and $29650. The price has rebounded from both these levels thrice indicating the range is having a significant impact on market participants. Here’s how potential traders can use this setup to accumulate BTC.
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Bitcoin Price Daily Chart
- The Bitcoin price trapped in a narrow range needs a breakout opportunity to replenish a directional trend
- A breakout above $31500 will surge the coin price 4.5% higher
- The intraday trading volume in Bitcoin is $10.5 Billion, indicating a 35% gain.
Source-Tradingview
On July 14th, the Bitcoin price reverted from the $31500 resistance with a bearish engulfing candle. The strong rejection was a sign that sellers are aggressively defending this resistance and thus the prices may continue to follow the range setup.
As of now, the BTC price trades at $30288, and with a 0.39% loss, it is gradually approaching the range support of $29650. If the buyers manage to hold this support, the consolidation phase will continue longer.
Thus, the aforementioned range is a no-trading zone, and a breakout beyond it would
Considering a pessimistic approach, a breakdown of $29650 will trigger a long correction and tumble the coin 5.6% down to reach $28000.
Conversely, a bullish $31500 will release the trapped bullish momentum and surge the Bitcoin price to $33000.
When Bitcoin Can Escape the Sideways Trend?
The ongoing consolidation phase in BTC price has created a sense of uncertainty among market participants. However, in a larger context, the largest cryptocurrency-Bitcoin stays bullish evidenced by the rising trendline which offers dynamic support to buyers. The anticipated correction could retest the trendline to replenish bullish momentum.
- Bollinger Bands: The shrunk range of the Bollinger Band indicator reflects an indecisive volatile phase.
- Relative Strength Index: The lower high formation in the RSI slope reflects the losing bullish momentum and the possibility of strong correction.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bitcoin-price-analysis-supply-stalls-btc-will-sideways-persist/