Bitcoin (BTC) has once again fallen into familiar territories, trading below the $30,000 mark, with investors closely monitoring its subsequent price trajectory. In the coming weeks, the asset’s valuation could be significantly influenced by upcoming macroeconomic news, such as the Federal Reserve interest rate decision.
In this line, according to prominent pseudonymous cryptocurrency analyst FieryTrading on TradingView, in a post on July 22, investors should expect increased Bitcoin volatility this weekend. However, he remains optimistic about the long-term bullish sentiment for the leading cryptocurrency.
He noted that despite Bitcoin’s failure to break through the $31,000 position, the long-term bullish trend remains intact.
He added that the upcoming Federal Reserve interest rate decision indicates that the market might be awaiting potentially increased volatility, which has also affected traditional financial products.
Elsewhere, another analysis posted on July 22 by Tolberti suggested that Bitcoin’s recent price movement point to a possible bullish breakout. According to the analysts, Bitcoin is showing a bullish pennant pattern on the daily chart after a month of consolidation.
He predicted a potential breakout to around $34,000 based on the 0.618 Fibonacci extension. A pullback may follow, but an uptrend to $39,000 is expected later.
At the same time, he pointed out that traders should be cautious, as a breakdown could lead to a drop to $21,000, and taking advantage of a possible breakdown with short positions is being considered.
Furthermore, he suggested that the bullish stand on Bitcoin emanated from the fact that several altcoins are showing signs of a possible breakout in the coming days.
Bitcoin’s recent underperformance
It is worth noting that Bitcoin’s recent underperformance is concerning for some market participants, especially given the presence of significant catalysts. The cryptocurrency market was initially boosted by the news of financial giants like BlackRock (NYSE: BLK) filing for spot Bitcoin exchange-traded funds (ETFs), which briefly lifted Bitcoin above $30,000 in June.
Additionally, the pro-crypto ruling in the Ripple case saw Bitcoin reach its highest value of the year. However, despite these positive developments, Bitcoin has struggled to maintain its high prices.
One of the contributing factors to this struggle is the ongoing regulatory uncertainties surrounding cryptocurrencies, which continue to exert downward pressure on prices. In general, the crypto market has been relatively quiet, indicating a lack of positive momentum.
While long-term holders of Bitcoin may remain confident in the cryptocurrency, their influence alone is not enough to sustain high prices.
Bitcoin price analysis
Currently, Bitcoin is striving to maintain its position above the $29,000 level, avoiding a free fall. As of press time, the asset was trading at $29,897, experiencing a decline of over 1% in the past seven days.
According to technical analysis, the one-day gauges retrieved from TradingView indicate neutrality. A summary of the gauges recommends a ‘neutral’ sentiment score of 9, while the moving averages indicate a ‘sell’ rating of 6. On the other hand, oscillators also align with the ‘neutral’ sentiment, registering a score of 8.
Overall, Bitcoin’s current underlying possible trigger is the upcoming Fed policy.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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