On July 5, the cryptocurrency market was relatively flat 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 bankruptcy protection. of bankruptcies.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has spent the day fluctuating near the $20,000 support level, ranging from a low of $19,775 to a daily high of $20,480; trade volume totaled USD 25.48 billion.
Here is a brief summary of what various analysts are saying about what could be coming for Bitcoin and the support and resistance levels to watch closely in the event of a sharp price move.
Beware of the repetition of this pennant pattern
A notable pattern on the Bitcoin chart before the pullbacks that have occurred since November 2021 was pointed out by analyst and pseudonymous Twitter user Mustache who public the graph below showing the similarities between each descent.
The analyst said:
“BTC has always drawn the same pattern, but has each descending triangle gotten smaller? Another break down and the target would be between $14,000 and $16,000.”
The renowned market analyst, Peter Brandt also recently highlighted the repeating pennant pattern on the Bitcoin chart, but he stopped short of saying in which direction the price might move once the formation is complete.
When it looks like a pennant and acts like a pennant it is often a pennant $BTC pic.twitter.com/O7RtnvFSp0
— Peter Brandt (@PeterLBrandt) July 5, 2022
Address count grows as market looks for bottom
Lately, one of the most popular topics of conversation among cryptocurrency enthusiasts on Twitter has centered around trying to predict the bottom of the Bitcoin price.
According to research firm, Delphi Digital, Bitcoin has already closed below its 200-week moving average for four consecutive weeks, a a fact that historically “has marked the lows of previous markets”.
As for whether Bitcoin traders should expect a quick recovery, Delphi Digital noted that “this is the longest time BTC has stayed below its 200-week moving average” and highlighted the fact that “Bitcoin’s weekly correlation coefficient remains inversely related to the US dollar, hitting a 17-month low of -0.77.”
Although the strength of the dollar suggests that the price of Bitcoin will continue to struggle alongside other assets, Delphi Digital highlighted an encouraging fact that suggests that the adoption of BTC continues to grow.
The firm said:
“With prices continuing to fall, the number of BTC addresses they accumulate continues to increase. Addresses holding at least 1 BTC have reached a new all-time high of 877,501.”
Some traders foresee an erratic movement for the rest of 2022
Market analyst and pseudonymous Twitter user KALEO offered a macro look at what Bitcoin’s past performance suggests about its future, publishing the chart below that summarizes previous market cycles.
Based on the graph and the predicted trajectory provided, Kaleo suggested that the market will continue to remain flat for the foreseeable future and will be “defined by a crab market saying above HTF log support”.
The analyst said:
“Most likely path from here is to see an established base range between $16,000-$30,000, eventually settling around December when price finally breaks above diagonal HTF resistance.”
The total cryptocurrency market capitalization currently stands at $916 million and the Bitcoin Dominance Index is at 42.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
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