BTC/USD is currently climbing as the recent move represents a break in the upward momentum of the recently observed phase of consolidation, but it is crucial to note that the Bitcoin price has not yet broken through any major technical levels. Bitcoin presently has a 46 percent market share. BTC is currently hovering around $34,187 at the time of writing.
The mining difficulty of the Bitcoin network has dropped by a remarkable 27.9% as a result of the recent “great hash-power movement” fueled by China’s crackdown on crypto mining.
The bulls main objective has been to defend the $33,000 support level and resume the advance toward $36,000. The price of bitcoin is reversing gains from far above $35,000. In the short run, it is anticipated to find firm support near $34,000. The biggest trading zones against this crypto economy’s smooth advance are around $35,000 and $40,000.
BTC has created its final Higher Low in Phase C, according to the Wyckoff Accumulation Schematic. To enter Phase D, it will most likely need to break through $36000.
Starting with the daily chart above, it is clear that Bitcoin is trading inside a symmetrical triangle formation. The coin double-bottomed last week and surged higher into the upper boundary of the triangle. It rolled over from there as July started to trade as the market headed into the lower boundary.
BTC is currently approaching the triangle’s apex, where a breakout can be expected in either direction. The Volume Profile shows that there is quite some resistance between $35,600 and $38,000. BTC would also need to break the mid-May resistance at $42,000 before turning bullish again.
According to daily chart, a golden cross pattern looks to have emerged. The 50-day moving average crossed above the 100-day moving average, forming this technical pattern. This pattern is seen by some of the industry’s most prominent technical analysts as one of the most definite buy signals that might kick off a bull run.
When will the Bitcoin Bulls Take Control?
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a daily closing candle beneath $30,000 would be required to turn the market bearish.
Looking ahead, if the sellers push beneath the support at the lower angle of the triangle, the first support lies at $33,415 (.5 Fib Retracement). This is followed by support at $33,000, $32,650 (.618 Fib Retracement), $32,000, and $31,500. Added support lies at $31,155 (long term .886 Fib Retracement), $30,600, and $30,000.
According to JPMorgan analyst Nikolaos Panigirtzoglou, the bitcoin price drop will likely cease until the cryptocurrency’s market share of all cryptocurrencies rises above 50%. He clarified,
A healthy number there, in terms of the share of bitcoin as a percentage of the total cryptocurrency market cap, is 50% or above. I think that’s another indicator to watch here in terms of whether this bear phase is over or not.