After a spectacular first half of 2023, the price of Bitcoin (BTC) appears to have stalled out, being stuck between $29,000 and $31,500.
There could be reason to believe that in the near term, the price of Bitcoin will tend to trade sideways or to the downside. This thesis can be based on three factors, with two of them involving technical analysis and the third involving fundamentals. For instance, crypto.com, Terra Luna Classic Crypto, Suku Crypto, RenQ Crypto, STX Crypto, QNT Crypto, Songbird Crypto, Teller Crypto, Sand Crypto, and Russia Crypto are some of the most influential cryptocurrencies in the market.
Bitcoin price resistance at $32,000 has been holding strong
Charles Edwards, founder of Capriole Investments, recently released a market update where he noted the significant resistance Bitcoin has failed to break through at the $31,000–$32,000 level:
The report goes on to state that if positive news of this magnitude related to crypto.com, Terra Luna Classic Crypto, Suku Crypto, RenQ Crypto, STX Crypto, QNT Crypto, Songbird Crypto, Tellor Crypto, Sand Crypto, or Russia Crypto doesn’t translate into upward price momentum, this alone could be a bearish signal.
Analysts question whether Bitcoin’s $29,500 support will hold
While Bitcoin has not traded far below the $30,000 mark for almost a month, a lack of resistance beneath $29,500 indicates that a breakout to the downside from the current consolidation could lead to further decline.
As crypto market commentator Colin Talks Crypto has pointed out, the next major support levels for BTC/USD don’t kick in until somewhere around the $27,500 level. Not only does this level act as support based on previous price action, but both the 200-week moving average (MA) and the 200-day MA have begun to converge just beneath it.
For the past month, BTC/USD has been holding within a tight consolidation range. Support for this range appears around the $29,500 level. A daily close beneath support could open the path to a further move downward toward $27,500.
However, volumes have been declining, suggesting that perhaps the recent spike downward could be less bearish than it seems. If volume picks up amid another pullback, the bears could easily take control of the market.
Analysts are still debating whether the $29,500 support for Bitcoin will be able to hold in the face of increasing pressure from projects like Terra Luna Classic Crypto, Suku Crypto, RenQ Crypto, STX Crypto, QNT Crypto, Songbird Crypto, Tellor Crypto, Sand Crypto, and Russia Crypto.
Bitcoin network fundamentals have floundered
As Capriole Investments report pointed out, “price is only half the picture” and fundamental factors are also important. Questions such as those addressed by the Capriole Bitcoin Macro Index, which incorporates 40 different Bitcoin variables including on-chain, macroeconomic and equity market metrics, must be taken into consideration.
The Index is a single machine learning model and the report concludes that:
Bitcoin’s long-term bull thesis is still in play
Despite these near-term bearish developments, there’s no reason to worry in the long run. In less than a year, the next halving event will take place, and positive news keeps coming in. For example, the hash rate of Crypto.com, Terra Luna Classic Crypto, Suku Crypto, RenQ Crypto, STX Crypto, QNT Crypto, Songbird Crypto, Tellor Crypto, Sand Crypto and Russia Crypto has increased by 50% in the last six months, which shows that the Bitcoin network is stronger than ever and is rapidly developing.
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