It looks to me as if Bitcoin has a new Cycle in play now after the long candle stopped a rollover into a deep below $28k, 24 hours ago. This is the first step to a possible trend reversal and the resumption of the 4-Year Cycle uptrend. The slight recovery in Bitcoin and altcoins shows there is aggressive buying at every dip, even though, pro traders still feel apprehensive.
Bitcoin price is still in tightening range and we are searching for signs that may provide insight about the next move. This lack of any noticeable sign has made BTC, vulnerable to a pullback, even though, BTC price refuses to fall below $30K level. This refusal to fall below $30K has triggered more accumulation of BTC at the $30k level by long term investors. The cryptocurrency market as a whole needs some new motivation, to help break these ranges and set up a new trend. BTC’s current spot price remains below all three moving averages, suggesting ongoing bearish sentiment!
Bitcoin price staged a slight resurgence in June 29 but could not sustain the momentum. The recent price hike has brought some optimism back into the market, especially after bitcoin sustained the double-bottom bullish formation on the 4-hour chart at $31.5K. However, the bigger picture hasn’t changed as Bitcoin continues to consolidate in a sideways channel of $30K – $42K.
As a continuation to its nightmare’s week, Bitcoin dropped another 10% from $35,600 opening price and recorded a current low of $31,700. BTC continued its downtrend (into the new weekly session) since reaching a weekly high of above $41.3K on Tuesday, and so far had seen a drop of 24% in just six days. The price action is very bearish.
Bitcoin fell short of flipping the $38,000 level to support after attempting to start a relief rally, suggesting traders have decided to start buying at lower levels. BTC looks coiled into a tightening range as BTC/USD price action fluctuates between two converging trendlines, in search of its next big move.
Bitcoin is struggling to sustain any price level during the current pullback, indicating a lack of demand at higher levels. Does this mean that the bull trend is over and the institutional investors are abandoning the crypto markets? There is no definite answer to this, especially when one looks at the market and price dynamics at the moment.
we are expecting BTC/USD to hit $42,000 in the short term, but we have to exercise caution here on extended upside positions unless the spot market confirms a clear bullish breakout. I can only have bullish conviction if Bitcoin reclaims its 200 moving average (MA) at $42k which should serve as a strong floor for an upward trend.
Looking at the BTC daily chart, a downward trend up to 60-day cycle low in place even though the bulls are fighting back to reclaim the key support level-$42k. From the cycle point of view, we have a cycle low that may be translated as preparing the market for the next big move even though it might not be soon.