Bitcoin price has had another week of sideways development. Resistance around $31,200 is resisting attempts by the bulls, and there hasn’t been any news bad enough to break the $30,000 support. This is already the second week we’ve been treading on the spot. Or are we just consolidating before further growth? Let’s look at the graphs together today.
This week we also have to take into account the Tuesday holiday in the United States and therefore lower volumes due to the absence of many traders. The biggest beating came after Thursday’s release of new US private sector jobs for the month of June. It can be seen from the hourly chart that the bulls were already trying to break through the resistance a few hours before the announcement itself (14:15 our time). There was a rejection and the announcement of unexpected results also supported the price drop. We stopped as low as $30,000. Although only for a moment, the market was waiting for the consequences of this announcement all Friday. However, the support worked.
The daily chart shows a possible future decline
If we look at the daily chart, we can see a rising wedge pattern there. This is usually evaluated as a bearish signal and can therefore indicate a potential drop in the price. The lower trendline is additionally reinforced by the 200-day exponential moving average. So the way down might not be easy for the bears either. The Fibonacci retracement shows us resistance at $28,000 and around $25,400. The downward direction would also be confirmed by the MACD and the RSI value, which is still moving close to the 70 mark, i.e. an overbought market.
What to conclude from this?
There is a lot of good news coming out of the market. Binance CEO Changpeng “CZ” Zhao took to Twitter to break down why BlackRock’s entry is positive news for them and Bitcoin, and why he believes another bull cycle is on the way. According to IntoTheBlock, Bitcoin’s correlation with both the stock market and gold continues to decline. This too can be interpreted as positive news, as Bitcoin is starting to emerge as a different asset class and more big players are entering it.
#Bitcoin Correlation Shift🔄: A month ago, $BTC demonstrated an inverse correlation with the stock market and a minor positive link with $GOLD. Fast forward to today, it’s intriguing to see $BTC showing no connection with traditional markets & a negative correlation with gold. pic.twitter.com/buxOio5CqJ
— IntoTheBlock (@intotheblock) June 27, 2023
The news thus speaks for future growth. Technical analysis of the daily chart, in turn, shows the potential for a correction. If the rising wedge scenario is fully fulfilled, we can easily get to test $16,000. But there are also analysts who see a cup & handle pattern on the 3-day chart. The latter, on the other hand, speaks for future growth.
So it is evident that many things can be found in the graphs and one can never say with certainty what will happen. We are already 250 days away from the halving, and the eventual approval of Bitcoin ETFs would definitely be bullish. So I’m definitely bullish on the long term. But it is not investment advice or any recommendation for you. DYOR.
2023-07-09 08:00:00
#Bitcoin #Price #Forms #Rising #Wedge
