- Bitcoin price consolidates at $19,000 while bulls repair its technical structure.
- A symmetrical triangle pattern on the eight-hour chart hints at a 10% bullish breakout to $20,915.
- Bitcoin price’s impending breakout could delay due to low trading volume on Sunday.
Bitcoin price is pivoting around $19,000 as it collects liquidity for its next move. This week’s trading was marred with challenging external forces from the United Kingdom’s Bank of England (BoE) and the United States Federal Reserve (Fed).
The latter hiked interest rates by 0.75%, with Jerome Powell, the Fed chair, reiterating that inflation must be combated. Although the BoE announced slightly less strict measures, its 0.50% hike saw interest rates spike to a 14-year high.
Bitcoin price and the crypto market have been feeling the pinch as investors shun risky assets. In other words, there isn’t just enough demand behind BTC for a rally despite analysts calling a floor price around $18,000.
Read more: Bears punch holes in Bitcoin price technical structure amid a glaring recession in the UK
Can traders squeeze in more gains from Bitcoin price?
Bitcoin bulls have a challenging task–defending the $19,000 inflection point. On the upside, a breakout is on the horizon following the formation of a symmetrical triangle pattern. The upper falling trendline shows sellers are not ready to let off Bitcoin price. However, the pattern’s ascending trend line cements buyers’ presence in the market.
As shown by the OBV (On Balance Volume) indicator, low trading volume signifies consolidation – and is synonymous with triangle breakouts.
The Moving Average Convergence Divergence (MACD) indicator on the same four-hour chart flaunts a positive outlook. Bitcoin price’s 10% breakout above the triangle will gain traction as the MACD moves closer to the mean line. Movement into the positive region (above the mean line) would confirm BTC’s optimistic outcome.
BTC/USD four-hour chart
The IOMAP on-chain model by IntoTheBlock (ITB) presents a conflicting outlook, as observed in the chart below. As Bitcoin price lifts toward its triangle target at $20,915, it might encounter heavy overhead pressure stemming from the 1.09 million addresses that previously bought roughly 575,000 coins between $19,617 and $20,156.
Bitcoin IOMAP model
For a bullish breakout to $20,915, Bitcoin price must use this calm period to collect enough liquidity from overpowering potential sellers. Otherwise, a recovery above $20,000 would remain a pipe dream to the extent of losses as far as $14,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple on-chain metrics show bullish signs amidst legal struggle with SEC, XRP eyes recovery
Ripple made a comeback above $0.48 on Tuesday and hovers above that level in Wednesday’s European session. Ripple on-chain metrics such as transaction volume and Network Realized Profit/Loss have turned bullish, supporting a recovery in the altcoin.
Bitcoin price falls amidst German government transfers, miners activity
Bitcoin (BTC) extends correction on Wednesday and hovers around $61,000 after finding resistance near the $64,000 level on Monday. Recent on-chain data indicates heightened selling activity from Bitcoin miners early in the week.
Crypto Today: Bitcoin erases gains from end of June, Ethereum declines while Ripple holds
Bitcoin wipes out gains from the last week of June and falls below $60,000 on Wednesday. Ethereum and top altcoins ranked by market capitalization erased gains as the inflation outlook worsened. Ripple holds on to recent gains and hovers above $0.48 on Wednesday.
Three reasons why altcoins could shake off losses this week
On-chain data from Santiment shows that altcoins are currently in the opportunity zone, or generating buy signals. The top three altcoins in the buy zone are Basic Attention Token (BAT), Chromia (CHR), and Highstreet (HIGH), per Santiment.
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.