The analysis of Bitcoin's (BTC) price suggests that it has been following a corrective pattern since July 13, which may be a reaction to its recent upward movement. Despite briefly reaching a new high for the year on July 13, there are indications of a potential decline in the price.
The analysis of Bitcoin's (BTC) price suggests that it has been following a corrective pattern since July 13, which may be a reaction to its recent upward movement. Despite briefly reaching a new high for the year on July 13, there are indications of a potential decline in the price.
On the daily time frame, BTC created a bearish engulfing candlestick after reaching the yearly high, but it still holds above the $30,300 support level. The daily RSI provides conflicting readings, with the indicator falling but still above 50. However, a triple bearish divergence since June 23 suggests a weakening in the upward momentum and the possibility of a bearish trend reversal.
On-chain metrics indicate that selling pressure is decreasing as short-term SOPR and aSOPR approach the support level of 1, suggesting that active participants are reaching their cost basis and are less likely to sell their assets at a loss. However, there are concerns about the rise in stablecoin withdrawals without significant deposit increases, indicating weakening retail demand during the peak bull markets compared to the early stages.
The six-hour time frame shows a mixed reading, with a wave count suggesting a completed five-wave increase since June 14 and a likely A-B-C correction within an ascending parallel channel. Another drop is expected within the channel, potentially reaching the support at $28,700. However, if BTC moves above the channel's midline, it could signal that the correction is complete and could resume its ascent to $35,000.
It's important to note that cryptocurrency markets are highly volatile and subject to rapid changes, so these predictions should be taken as informative analysis rather than definitive price forecasts. Traders and investors should exercise caution and conduct their own research before making any financial decisions.