Trading across the cryptocurrency market was relatively subdued on July 5 as the ecosystem continues to digest the fallout from the Three Arrows Capital scandal and Voyager Digital announced that it has filed for Chapter 11 bankruptcy protection.
Data from Cointelegraph Markets Pro and TradingView show that the price of Bitcoin (BTC) has spent the day swinging around the support level of $ 20,000, ranging from a low of $ 19.775 to an intraday high of $ 20.480 at $ 25.48 billion in trading volume.
Here’s a look at what several analysts are saying about what may come next for Bitcoin and what levels of support and resistance to keep an eye on in the event of a sharp price movement.
See the repeated pennant pattern
A noticeable pattern on the Bitcoin chart before the withdrawals that have occurred since November 2021 was pointed out by cryptanalyst and pseudonym Twitter user Mustache, who posted the following diagram shows the similarities between each drawdown.
“$ BTC has done the same pattern every time, but each descending triangle has become smaller and smaller? Another bearish eruption and the target will be between $ 14,000 and $ 16,000.”
Well-known market analyst Peter Brandt also recently highlighted the recurring pendulum pattern on the Bitcoin chart, but stopped to say which way the price could move once the formation is complete.
– Peter Brandt (@PeterLBrandt) July 5, 2022
The number of addresses is growing as the market looks for a bottom
Lately, one of the most popular topics of conversation on crypto Twitter has been centered around trying to predict the bottom of the Bitcoin price.
According to cryptocurrency research firm Delphi Digital, Bitcoin has now closed below its 200-week average for four consecutive weeks, a development that has historically “marked previous market bottoms.”
Regarding whether or not Bitcoin traders should expect a rapid recovery, Delphi Digital noted that “this is the longest BTC has stayed below its 200 weekly average” and highlighted the fact that “Bitcoin’s weekly correlation coefficient continues to remain inversely related to US dollars when it reached a low of 17 months at -0.77. “
While a strong dollar suggests that the Bitcoin price will continue to struggle with other assets, Delphi Digital highlighted an encouraging development that suggests that BTC adoption continues to grow.
Delphi Digital said,
“With prices continuing to fall, the number of BTC addresses accumulating BTC continues to rise. Addresses with at least one BTC have reached a new all-time high of 877,501.”
Related: The world’s first short Bitcoin ETF sees exposure explode 300% in days
Some traders predict the chop for the rest of 2022
A macro look at what Bitcoin’s past performance suggests about the future was provided by market analyst and pseudonym Twitter user KALEO, who posted the following diagram outlining previous market cycles.
Based on the chart and the predicted path given, Kaleo suggested that the market will continue to trade sideways in the foreseeable future and will be “defined by a crab market that says above HTF logarithmic support.
“The most likely way out of here is to see a base range between $ 16K – $ 30K established, which will finally settle around December when the price finally breaks over HTF diagonal resistance.”
The total market value of cryptocurrency is now $ 916 billion and Bitcoin’s dominance is 42.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should conduct your own research when making a decision.