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.
1 BTC to USD = $29950.026 -1.21% (24h) TRADE
BTC
USD
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.