The world’s biggest cryptocurrency Bitcoin (BTC) by market capitalization is largely sluggish with its price revolving around $30,000. Exchanging hands at $29,893, the big crypto is down a mere 0.6% over the last 24 hours. Its trading volume has risen 32% to $15 billion over the day after shrinking to $11 billion on Thursday.
Bitcoin’s market capitalization stands at an impressive $579 billion, and the digital asset has experienced a cumulative loss of 4.96% over the past seven days.
Where Could Bitcoin Be Headed Next?
Bitcoin’s price continues to fluctuate within the same supply zone, with bullish sentiments holding firm around the $30,000 mark. Despite occasional dips below this level, they have not caused panic-selling among traders and investors who remain optimistic about potential rallies to $35,000 and $40,000.
In the event of further declines below $30,000, the 50-day Simple Moving Average (SMA) at $28,966 and the 100-day SMA at $28,533 are likely to be the initial support levels that sellers would encounter. Some market analysts anticipate a potential drop to the $28,000 psychological level. This could provide BTC with new liquidity, paving the way for the eagerly anticipated rally.
BTC/USD Daily Chart
Bulls are making strong efforts to maintain the flagship cryptocurrency’s price around $30,000, despite minor dips into the upper $29,600 zone. However, since July 3, the Relative Strength Index (RSI) has been signaling a bearish sentiment, further accentuated by a drop into the negative region. The price strength at 48 suggests that bears have begun taking control of the market.
Holding above $30,000 is no longer sufficient for the resumption of the uptrend. To keep bears at bay and dictate the coin’s direction, Bitcoin needs to gather momentum to break out from consolidation by rising above $30.750.
As a result, the market may experience continued fluctuations until BTC successfully surpasses the resistance at $31,800, the year-to-date-high and aims for the next hurdle at $32,000.
What does this mean for the larger crypto market?
The surge in interest from various financial institutions seeking to offer a spot Bitcoin exchange-traded fund (ETF) last month played a significant role in the sharp climb from early June’s lows, slightly below $25,000, to highs around $31,800. This upward trend can be attributed to momentum and narrative from traders who responded to the news and are currently holding onto their BTC in anticipation of a prolonged rally.
In July, news and events related to Bitcoin were scarce, resulting in a decline in market activities. However, the Money Flow Index (MFI) indicates that more funds are starting to enter the market. If the inflow volume continues to surpass the outflow volume, Bitcoin’s price is likely to initiate a marketwide uptrend.
I’m Extremely Bullish on #Altcoins!
– Bitcoin is in S/R Range.
– $BTC Dominance is Topped out.
– TOTAL3 Wedge Breakout Confirmed.#Crypto #Bitcoin #BTC pic.twitter.com/nt8M50UKxK— Captain Faibik (@CryptoFaibik) July 21, 2023
Crypto analysts at Captain Faibik is confident that Bitcoin is now ready for upward acceleration phase after breaking out of a falling wedge. According to Faibik, BTC’s dominance has “topped out” paving the way for altcoins to rally.
In other words, investors may want to seriously consider stuffing their wallets ahead of the next bull run likely to begin in 2023.
