Bitcoin Price Analysis: Accumulation at Crucial Support Hints $BTC Rally to $32000

Brian Bollinger
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Bitcoin Price Analysis

Bitcoin Price Analysis: The Bitcoin price continues its sideways trend resonating within two diverging trendlines of a megaphone pattern. It’s been over a month, and no initiative from buyers or sellers indicates the market sentiment remains indecisive about the potential trend. However, with the recent downfall, the BTC price is back to the combined support of $29640 and support trendline. Will buyers make a comeback or sellers could plunge the price trend lower?

Also Read: Don’t Miss These Key Crypto Market Movers This Week

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Bitcoin Price Daily Chart

  • The megaphone pattern formation is a sign of increased volatility and uncertain trends.
  • The $26940 level offers strong support to market buyers
  • The intraday trading volume in Bitcoin is $17.9  Billion, indicating a 14.7% loss.

Bitcoin Price AnalysisSource- Tradingview

On July 20th, the Bitcoin price showed a high wave candlestick pattern(candle with long wick & tail) at the $29640 support. Over the past three days, the Bitcoin price has traded within the spread of the aforementioned candle creating a narrow range. 

However, the coin buyers obtained constant support from the $29640 level suggesting a valid possibility of a bullish reversal. For a bullish reversal to revisit the overhead trendline of the megaphone pattern, the buyers would need a breakout from the July 20th high of $30522. 

The potential breakout would signal the resumption of a sideways trendline and surge the BTC price 4.5-5% higher and hit the overhead trendline.

[converter id=”btc-bitcoin” url=”https://coingape.com/price/converter/btc-to-usd/”]

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Will BTC Price Extend the Correction Phase?

The Megaphone pattern projects a possibility of either side breakout. Amid the current uncertainty in the market, a breakdown below the lower trendline with a daily candle closing will signal a prolonged correction. This breakdown will tumble the Bitcoin price 5.8% down to reach $28000.

  • Bollinger Band: The range of Bollinger Band indicator shrinking reflect the increased volatility in the market.
  • Relative Strength Index: An evident divergence in the daily RSI slope reflects the weakening bullish momentum and increased potential for long correction.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
From the past 5 years I am working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. Reach out to me at brian (at) coingape.com
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.