Lorenzo Stroe
Independent Analyst
- Bitcoin price defended a crucial support level at $30,000 and currently trades at $38,000.
- However, after a significant rally in the past week, the flagship cryptocurrency might be poised for a correction.
- There are several indicators showing Bitcoin price can slip towards $34,000.
Bitcoin’s market dominance has experienced a steep decline in the past week going from 65% to only 60.8% while many altcoins are pumping quite hard. Nonetheless, Bitcoin price has recovered from its low point of $28,850 and it’s extremely close to $40,000.
Bitcoin price needs to retrace first before another leg up
On the daily chart, the TD Sequential indicator has presented a sell signal for the first time since January 10. On top of that, the parabolic SAR remains bearish just like the SuperTrend indicator, adding a lot of credence to a bearish breakdown.
BTC/USD daily chart
The current price of Bitcoin is hovering around the upper Bollinger band. A rejection from this point can push Bitcoin price down to the middle band at $34,000. Failure to hold this level can put investors into panic mode and drive BTC down to the 100-SMA at $32,000 and even slice through it down to $30,000.
BTC/USD daily chart
However, despite several indicators in favor of the bears, a breakout above the upper Bollinger band at $38,400 would invalidate the bearish outlook and push Bitcoin price towards $40,000.
BTC IOMAP chart
The In/Out of the Money Around Price (IOMAP) model indicates that Bitcoin has a ton of support below $38,000 until $32,000. On the other hand, there is only one crucial barrier between $38,200 and $38,500 which coincides with the upper Bollinger band. The IOMAP model adds credence to the bullish outlook as a breakout above this barrier will drive Bitcoin price to $40,000.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.