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

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

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.

Source- 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/”]

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.