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For some weeks, bitcoin prices have been stuck in a tight range. (AFP photo by INA FASSBENDER) [+]… (Image courtesy of INA FASSBENDER/AFP/Getty Images)
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For several weeks, bitcoin prices have been moving inside a very well defined range. According to CoinDesk, the world’s most popular digital currency has been trading primarily between $30,000 and $42,000 since late May.
According to supplementary CoinDesk data, it has been following this pattern since rising to a new all-time high of more nearly $64,000 in April, before losing much of what it gained in 2021.
Various technical analysts have weighed in on when the Bitcoin might see additional volatility as it continues to face this relative malaise.
[Editor’s note: Investing in cryptocoins or tokens is extremely risky, and the market is mainly unregulated.] Anyone thinking about it should be aware that they could lose their entire investment.]
The ‘Calm Before The Storm’ is a phrase used to describe a period of calm before a storm
“We are obviously in a consolidation phase, commonly known as the ‘quiet before the storm,'” Invest Diva CEO Kiana Danial remarked. “That suggests we’re on the verge of seeing a breakout.”
She went on to expound on this assertion, stating that bitcoin’s present trend is slightly bearish.
“The BTC/USD pair is still below the daily Ichimoku cloud and has broken below the 4-hour Ichimoku cloud, indicating that bearish pressure is stronger than bullish pressure,” Danial explained.
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“Moreover, in the last month, the pair has been forming lower highs, indicating that bearish sentiment is significantly greater than bullish enthusiasm.”
StockCharts.com’s top market strategist, David Keller, shared a similar viewpoint.
“Bitcoin’s chart has been in distribution mode since April, with smaller momentum peaks on each rise over the last three months,” he explained.
“Given the reduced momentum characteristics, I would expect the path of least resistance to remain lower.”
A Positive Prediction
Nick Mancini, a research analyst at Trade The Chain, a crypto sentiment data source, offered a more bullish outlook than the aforementioned experts.
“We can catch a peek of bullishness on the price chart when looking at Bitcoin’s future,” he said.
“The Bollinger Bands (BBs) are tightening around Bitcoin’s recent price moves, which is usually a sign of a significant price move. It is now trading on the lower bound band, and given the recent sentiment rise, we expect it to revert soon “Mancini stated.
He also mentioned that “an inverse head and shoulders” is forming.
“When the neckline is breached, the inverse head and shoulders, which have two shoulders, a head, and a neckline, often push bullish. The 200-Day Moving Average, which has been a bastion for Bitcoin price activity since June, serves as the neckline in this situation.”
Levels to Keep an Eye On
Analysts weighed in on the important levels of support and resistance to watch as market observers continue to study bitcoin’s price moves.
“BTC has been consolidating between 0.618 and 0.5 fib levels, which has created strong bearish and bullish cases,” Mario Gomez Lozada, CEO of trading platform PowerTrade, said. “If BTC price breaks down the support of 30-31k, it could go straight down to the next fib support level, which is at around 24.8k, and potentially touch the long term trend line (yellow) at 20k,” he added.
Similar figures were mentioned by Keller, who stated: ” “In May and June, the price of itcoin was tempered by persistent support around the $30,000 mark. A fall below this crucial support level might signal a new round of selling, pushing Bitcoin into the low $20,000s.”
The two analysts did, however, note several key resistance levels that the digital currency would face.
“A break above $40,000 would reverse the current downward trend and signal further upside,” Keller explained.
“First, Bitcoin would have to break through trendline support on the hourly chart, which is now around $34,000.”
If the digital asset reaches $39,000 by the end of the month, according to Lozada, it will “burst out to the upside in a very rapid pace” as the bull run continues.
“Because the Bollinger Band is significantly stretched,” he said, bitcoin could have a lot of upside potential.
I own bitcoin, bitcoin cash, litecoin, ether, and EOS, among other cryptocurrencies./nRead More

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