BTC bulls are holding $20,000, but most traders are confident that the price will stay in a range for at least another six months.
Trading in the market for crypto-currencies were relatively weak on July 5 as the ecosystem continues to digest the fallout from the Three Arrows Capital scandal and Voyager Digital’s announcement that it has filed for Chapter 11 bankruptcies.
Data from Cointelegraph Markets Pro and TradingView shows that the price of bitcoin (BTC) spent the day hovering around the $20,000 support level, ranging from a low of $19,775 to an intraday high of $20,480 on a trade volume of $25.48 billion.
Here’s what several analysts are saying about what could happen to bitcoin and what support and resistance levels to watch should the price rise sharply.
Look at the repeating pennant pattern
A noticeable pattern on the bitcoin chart prior to the pullbacks that have taken place since November 2021 was pointed out by crypto analyst and pseudo Twitter user Mustache, who posted the following chart displaying the similarities between each pullback. This may interest you: FBI arrests two men who were planning a “Violent” theft of Bitcoins worth millions of dollars!.
Renowned market analyst Peter Brandt also recently highlighted the repeating pennant pattern on the bitcoin chart, but he didn’t say which way the price might move once the formation is over.
When it looks like a pennant and acts like a pennant, it’s often a $BTC pennant pic.twitter.com/O7RtnvFSp0
The number of addresses increases as the market seeks a floor
One of the most popular topics of conversation on Crypto Twitter lately has centered around trying to predict bitcoin’s price bottom. See the article: Why did Ethereum, Polkadot and Harmony prices soar this weekend?.
According to cryptocurrency research firm Delphi Digital, bitcoin has now closed below its weekly average of 200 for four straight weeks, a development that has historically “marked previous market lows.”
As to whether bitcoin traders should expect a quick recovery, Delphi Digital noted that “this is the longest period that BTC has been below its weekly average of 200″ and highlighted the fact that ” bitcoin’s weekly correlation coefficient continues to remain inversely linked to the US dollar as it hit a 17-month low of -0.77. »
While a strong dollar suggests bitcoin price will continue to struggle against other assets, Delphi Digital pointed to an encouraging development that suggests BTC adoption continues to grow.
See also: World’s first short Bitcoin ETF sees exposure explode 300% in days.
Some traders are forecasting a drop for the rest of 2022.
Market analyst and pseudo-Twitter KALEO provided a macro view of what bitcoin’s past performance suggests for the future. Read also: XRP price prediction for 2022: what future for Ripple in the short / medium term?. He published the following chart, which depicts previous market cycles.
Based on the chart and the predicted path provided, Kaleo suggested that the market will continue to trade sideways for the foreseeable future and will be “defined by a market crab say above log support HTF”.
The overall market capitalization of cryptocurrencies now stands at $916 billion and bitcoin’s dominance rate is 42.5%.
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