In early July Bitcoin traded around $36,000, but buyer enthusiasm proved short-lived. Within three weeks the price slid to $29,000, and Bitcoin again entered a bear phase.
Should we expect Bitcoin to hold below $30,000? Is a rebound possible under the current conditions, or will the summer sideways market continue? We analyse indicators and price levels for Bitcoin and Ethereum on the cryptocurrency exchange Bybit.
BTCUSD
This month Bitcoin volatility has continued to ease. This week it approached a low near 14.50 points. We may expect volatility to rise, since historically this level has acted as a strong support.
Together with the decline in volatility, the price is completing a move within a descending triangle. This is a bearish pattern formed on a downtrend and signals its continuation. Typically, нисходящие треугольники end with a break of support. The impulse of movement equals the height of the triangle.
There is a possibility of a rebound on a false break of the psychological level of $30 000. In that case the price BTCUSD would meet resistance at the $33 400 level.
If the triangle is truly broken there is a chance of a drop to the $24 400 level or even to $20 100. At these levels, buyers may step in and start accumulating Bitcoin.
ETHUSD
On the ETHUSD chart a descending triangle has also formed with support at $1700. If broken downward, the nearest support level would be $1300. The bears’ target on a true breakout of the triangle is $550.
Conclusions
A breakout from descending triangles could end with a 20% drop for Bitcoin and a 25% drop for Ethereum.
If the bears do not push prices lower, a rebound and continuation of the range-bound movement in the $31,000–$35,000 range for Bitcoin and $1,900–$2,400 for Ethereum could be expected.
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