Financial market forecasts are the private opinions of their authors. The current analysis is not intended to be a guide to trading. Cryplogger is not responsible for the results of work that may arise when using trading recommendations from the presented reviews.
A fall in the price of bitcoin down from a prolonged consolidation looks like the most likely scenario. Since the springs of the markets have compressed as much as possible, an exit in one direction or another is likely in the coming days or even hours, said the leading strategist of EXANTE Janis Kivkulis.
The fluctuations in the price of bitcoin over the past two months fit well into a triangle with frequent bounces from levels near $ 31,500 and renewed sales from increasingly lower values. A month ago, the rebound lost strength by $ 40,000, a couple of weeks ago the price reversed at levels above $ 36,000, and at the beginning of the week sellers took over at $ 34,000.
So far, Bitcoin has supported enthusiasts’ belief in its appeal if the price falls by half of its peak levels. However, a downward trend from ever lower levels is a significant selling factor.
Given the hype specificity of cryptocurrencies – they are often bought with a view to rapid growth – protracted consolidation is increasingly frustrating speculators. Bitcoin trading volumes have plummeted in the past two months, down fourfold compared to their peaks: investors are waiting for a further fall, while speculators are curtailing activity.
Among the technical signals on the bears’ side are Bitcoin falling below its 200-day average at the end of last month and a failed attempt to return above this level at the beginning of July. A death cross forms on the bitcoin chart when the 50-day moving average crosses downward from the 200-day average.
A failure under the support line by $ 31,500 can drive the price below $ 30,000 in a matter of hours. Then the question of falling down to the $ 23,300 levels, where Bitcoin was gathering strength for a breakthrough in January 2021, will become relevant. It cannot be ruled out that overclocking the price will even close the gap in the $ 18,000 area. Such a turn of events could be a repetition of the 2018 crypto winter. It will open the door for a commensurate price crash with a bottom near $ 10,000 and nullify the rally of the first cryptocurrency that began in October 2020.
Ethereum has come under pressure since July 7, returning during this time to the area of last month’s lows, which is in line with the general dynamics of the market. At the same time, the current level near $ 1900 was previously a significant area of resistance. On the chart of the second cryptocurrency, a head and shoulders pattern is formed, which creates significant potential for a decline to $ 600-700 in case the market surrenders the current line of defense.
Bitcoin, like Ethereum, has formed the prerequisites for an extremely strong decline in the event of a failure below the current levels. Even more alarming, there has been a lull in the cryptocurrency market in recent days, reminiscent of the consolidation of bears’ power ahead of a major hit. And this situation should not be regarded as the stability of the crypto market amid a sell-off in stocks or commodities. In recent months, we have seen more than once how quickly a lull can give way to a massive collapse.
Subscribe to Cryplogger news on Telegram: Cryplogger Feed – the entire news feed, Cryplogger – the most important news, infographics and opinions.
Found a mistake in the text? Select it and press CTRL + ENTER
Financial market forecasts are the private opinions of their authors. The current analysis is not intended to be a guide to trading. Cryplogger is not responsible for the results of work that may arise when using trading recommendations from the presented reviews.
A fall in the price of bitcoin down from a prolonged consolidation looks like the most likely scenario. Since the springs of the markets have compressed as much as possible, an exit in one direction or another is likely in the coming days or even hours, said the leading strategist of EXANTE Janis Kivkulis.
The fluctuations in the price of bitcoin over the past two months fit well into a triangle with frequent bounces from levels near $ 31,500 and renewed sales from increasingly lower values. A month ago, the rebound lost strength by $ 40,000, a couple of weeks ago the price reversed at levels above $ 36,000, and at the beginning of the week sellers took over at $ 34,000.
So far, Bitcoin has supported enthusiasts’ belief in its appeal if the price falls by half of its peak levels. However, a downward trend from ever lower levels is a significant selling factor.
Given the hype specificity of cryptocurrencies – they are often bought with a view to rapid growth – protracted consolidation is increasingly frustrating speculators. Bitcoin trading volumes have plummeted in the past two months, down fourfold compared to their peaks: investors are waiting for a further fall, while speculators are curtailing activity.
Among the technical signals on the bears’ side are Bitcoin falling below its 200-day average at the end of last month and a failed attempt to return above this level at the beginning of July. A death cross forms on the bitcoin chart when the 50-day moving average crosses downward from the 200-day average.
A failure under the support line by $ 31,500 can drive the price below $ 30,000 in a matter of hours. Then the question of falling down to the $ 23,300 levels, where Bitcoin was gathering strength for a breakthrough in January 2021, will become relevant. It cannot be ruled out that overclocking the price will even close the gap in the $ 18,000 area. Such a turn of events could be a repetition of the 2018 crypto winter. It will open the door for a commensurate price crash with a bottom near $ 10,000 and nullify the rally of the first cryptocurrency that began in October 2020.
Ethereum has come under pressure since July 7, returning during this time to the area of last month’s lows, which is in line with the general dynamics of the market. At the same time, the current level near $ 1900 was previously a significant area of resistance. On the chart of the second cryptocurrency, a head and shoulders pattern is formed, which creates significant potential for a decline to $ 600-700 in case the market surrenders the current line of defense.
Bitcoin, like Ethereum, has formed the prerequisites for an extremely strong decline in the event of a failure below the current levels. Even more alarming, there has been a lull in the cryptocurrency market in recent days, reminiscent of the consolidation of bears’ power ahead of a major hit. And this situation should not be regarded as the stability of the crypto market amid a sell-off in stocks or commodities. In recent months, we have seen more than once how quickly a lull can give way to a massive collapse.
Subscribe to Cryplogger news on Telegram: Cryplogger Feed – the entire news feed, Cryplogger – the most important news, infographics and opinions.
Found a mistake in the text? Select it and press CTRL + ENTER
