Bitcoin price holds $20K, but analysts say ‘expect 6 months of sideways’ price action

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Trading in the cryptocurrency market was relatively low on July 5 as the ecosystem continues to digest the fallout from the Three Arrows Capital scandal and Voyager Digital announced that it has filed for Chapter 11 bankruptcy protection.

Data from Cointelegraph Markets Pro and TradingView shows that bitcoin (BTC) price spent the day near the $20,000 support level, ranging from a low of $19,775 low at $20,480 to an intraday high of $25.48 at $25.48. Billion.

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BTC/USDT 1-Day Chart. Source: TradingView

Here’s a look at what many analysts are saying about what could happen next for bitcoin and what support and resistance levels to watch for in the event of a sharp change in price.

Look for repeating pennant patterns

A noticeable pattern on the bitcoin charts was pointed out by crypto analyst and pseudonymous Twitter user Mustache, prior to the November 2021 pullback, who deployment of The following chart displays the similarities between each of the drawdowns.

BTC/USD 1-Day Chart. Source: Twitter

Mustache said,

“$BTC has done the same pattern each time, but each descending triangle gets smaller and smaller? Another bearish breakout and targets between $14,000 and $16,000.”

Noted market analyst Peter Brandt also recently highlighted a repeating pennant pattern on bitcoin charts, but stopped short of saying which way the price could move once the formation is complete.

As the market looks downward, the number of addresses increases

Lately, one of the most popular topics of conversation on crypto Twitter has centered around trying to predict a downside in the price of bitcoin.

According to cryptocurrency research firm Delphi Digital, bitcoin has now closed below its 200 weekly average for four consecutive weeks, a development that has historically “marked previous market lows.”

Bitcoin price performance since January 2020. Source: Delphi Digital

Whether or not bitcoin traders should expect a swift recovery, Delphi Digital stated that “this is the longest BTC has been below its 200 weekly average” and highlighted the fact that “Bitcoin’s weekly correlation coefficient to the US dollar” Inversely related. Because it hit a 17-month low of -0.77.”

While a strong dollar suggests that the price of bitcoin will continue to struggle with other assets, Delphi Digital highlights an encouraging development that suggests that BTC adoption is on the rise.

Delphi Digital said,

“The number of BTC addresses depositing BTC continues to increase as prices drop. Addresses holding at least one BTC have reached a new all-time high of 877,501.”

related: World’s First Short Bitcoin ETF Increases Exposure by 300% in Just Days

Some traders predict chops for the remainder of 2022

A macro look at what bitcoin’s past performance reveals about its future was provided by market analyst and pseudonymous Twitter user KALEO, who deployment of The following chart outlines past market cycles.

BTC/USD 3-day chart. Source: Twitter

Based on the chart and the predicted path provided, Kaleo suggests that the market will continue to trade sideways for the foreseeable future and will be “defined by a crab market above HTF logarithmic support.

Kaleo said,

“From here a base range is most likely forming between $16K – $30K, which eventually resolves around December when the price finally breaks through the HTF diagonal resistance.”

The total cryptocurrency market cap now stands at $916 billion and bitcoin has a dominance rate of 42.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, so you should do your own research when making a decision.