Bitcoin (BTC) has failed to break through the resistance level of $31500 and has fallen back to the range of $30300 to $30800 in the past few days. This Cryptocurrency also failed to recover the threshold of $31000, leading some people to believe that the short position of Bitcoin may still prevail
Bitcoin (BTC) has failed to break through the resistance level of $31500 and has fallen back to the range of $30300 to $30800 in the past few days. This Cryptocurrency also failed to recover the threshold of $31000, leading some people to believe that the short position of Bitcoin may still prevail.
Despite recent signs of strength, Bitcoin is unable to overcome key resistance levels, which has kept many investors vigilant. The failure of the digital currency to break through the current range indicates that it may suffer further losses in the short term.
Liquidity grabbing leads to Bitcoin plummeting
Since June 15th, Bitcoin has been performing well, rising 25% in 9 days. However, Cryptocurrency analyst Justin Bennet said that the recent price trend showed that the correction might be reasonable.
Bitcoin bulls have flocked to the rally, but as Bennett pointed out, Bitcoin usually does not provide free ride services for those who are late. The pullback from the current level slightly above $30000 is reasonable, and the price trend within the 8-hour time frame looks very similar to the high point of fluctuations in April.
In April, Bitcoin closed above $30400 on an 8-hour trend line, but closed below in the next few candles. Although BTC performed well this time, the 4-hour time frame has fallen below $30400. The next few 8-hour candles will confirm whether this collapse continues.
If that's the case, Bennet believes that the price may be adjusted back to the $28000 area to clear the long BTC position in the later period. If tested, how the price trend of Bitcoin will develop between $27000 and $28000 will determine the trend of BTC in July.
On the other hand, if it continues to exceed $31000, it indicates that the bulls are still under control and face a risk of $32500.
Nevertheless, despite the uncertainty in market conditions, as long as bulls remain on the $30000 line, the current upward trend of Bitcoin is far from over.
Historical data shows that if Bitcoin can consolidate and maintain this critical support level, there are many opportunities for it to continue to break through higher levels and reach annual highs.
On the contrary, if Bitcoin succumbs to bearish pressure, the support level of $29500 will be the next noteworthy support level. If BTC falls below this level, the downward trend may continue, potentially leading to a further decline towards the $27300 line.
Despite the potential downside risk, the Bitcoin market continues to receive positive news with the application of Fidelity and BlackRock Spot Exchange Trading Fund (ETF). The approval of these ETF applications may further boost the current price trend and potentially set a new annual high.
Bitcoin is currently trading at $30600, with a slight increase of 1.4% in the past 24 hours.
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