BTC fell a total of 6% during the week as of now as it currently struggles to stay above $ 32K. The major cryptocurrency has been trading within a long period of consolidation between $ 30K and $ 40.5K since the mid-May capitulation candle and between $ 30K and $ 35,000 in the past month.
This consolidation can be seen in the form of a bearish triangle, as shown below on the daily chart.
As has happened in recent weeks when BTC tested the low of $ 30-31,000, this week’s low is in the same support line: $ 31K since Friday.
This critical range has supported the market on numerous occasions since mid-May. Hence, it will be a crucial support to defend to prevent a slide below $ 30,000.
BTC is now fast approaching the apex of the triangle, as seen in the daily chart below, indicating a potentially colossal move coming in the coming days or even hours.
From a technical point of view, the Bollinger Bands are very compressed, along with the decrease in the amount of volume. Fundamentally – the market anticipates the GBTC unlocking event, which starts today – July 18th.
Looking at the 4-hour chart, BTC is trading inside a descending price channel since the beginning of June. On Friday it found support in the lower corner of this price channel and bounced from there to push resistance at $ 32,300. This has formed a short-term ascending price channel (white lines) within which BTC is now trading.
So far in the past month, Bitcoin has been able to “fix” the weekly candle with a decent price hike on Sunday, which has left a long wick. Whether this current Sunday will end in the same way remains to be seen.
BTC price support and resistance levels to watch
Key Support Levels: $ 31,700, $ 30-31K, $ 29,400, $ 28.6K
Key Resistance Levels: $ 32,300 – $ 32,700, $ 33.5K, $ 35,000, $ 36,600.
Looking ahead, the first support is at $ 31,700, the lower corner of the short-term ascending price channel. This is closely followed by a critical support area within the $ 30-31K range, which is the lower boundary of the triangle.
In the event of a break of $ 30K, the next support is at $ 29,400 (downside 1,272 Fib Extension – blue), followed by $ 28.6K, which is the June low.
On the other hand, the first resistance lies between $ 32,300 (short-term resistance) and $ 32,700 (upper corner of the triangle). This is followed by $ 33.5K (upper corner of the descending price channel and 20-day MA), $ 35,000 (50-day MA) and $ 36,600 (end-June highs).
The daily RSI remains below the midline and below the long-term descending trend line (blue line), preventing momentum from creating a higher high since February. A breakout of this blue line would indicate that momentum is finally ready to pick up in the long term.
Bitstamp BTC / USD daily chart
Bitstamp BTC / USD 4-hour chart
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