Bitcoin’s anticipated bullish surge above $30,000 is currently on hold, as the crypto market faces a shortage of sufficient liquidity to drive a rally. As a result, consolidation is prevailing in the range of $29,000 to $30,000.
At the time of writing, Bitcoin price is hovering around $29,007 after briefly trading within the $28,000 zone. The big crypto is down 1.73% over the last 24 hours, reinforcing the bearish sentiment that has underpinned the price since mid-July. Does this mean BTC’s recovery is over?
Bitcoin Price Trades Below Key Support Levels
After turning away from the $31.875 high hit on July 13, BTC has dropped 9% to the current levels. This downturn saw the pioneer cryptocurrency record a series of lower highs as it breached the support provided by the $30,000 psychological level and the 50-day simple moving average (SMA).
At the time of writing, BTC was trading in a third straight bearish session on the daily chart. The Relative Strength Index (RSI) was facing downward and the price value at 30 painted near oversold conditions. This suggested that the bears were in full control of the price and were determined to pull it lower.
BTC/USD Daily Chart
Therefore, a daily candlestick close below 100-day SMA around $28,500 would spell doom for BTC bulls with the next line of defense emerging from the $26,800 support level, currently embraced by the 200-day SMA. Breaching this level would see Bitcoin price drop further to seek solace from the $26,600 support floor or revisit the $25,000 demand zone.
Bitcoin’s bearish case was supported by on-chain data from IntoTheBlock, a blockchain and market data analytics firm. Its In/Out of the Money Around Price (IOMAP) model showed that BTC faced relatively stiff resistance in its recovery path compared to the support it has on the downside.
The IOMAP chart below reinforces the stiffness of the hurdle at $30,000. This is within the $29,729 and $30,605 price range where approximately 966,840 BTC were previously bought by roughly 2.54 million addresses. Any attempts to push the price above this level would be met by intense selling from this cohort of suppliers who may wish to break even.
Bitcoin IOMAP Chart
On the upside, popular crypto analyst Rekt Capital says the pioneer cryptocurrency still enjoys support around the $29,000 level, which is still a strong “monthly support.”
People get euphoric at resistance
And fearful at support#BTC is still at Monthly support$BTC #Crypto #Bitcoin pic.twitter.com/JKGhNNygpg
— Rekt Capital (@rektcapital) July 31, 2023
As such, increased demand from this level could push BTC above the 50-day SMA currently sitting at $29,600 toward the $30,000 mark. Such a move could see BTC rise first toward $32,000 and later revisit the $35,000 psychological level.
