Since Bitcoin’s meteoric ascent and collapse in 2017, most bullish-bearish cycles have been viewed through the lens of levels. The importance of resistance and support has never been greater. Furthermore, some experts have been able to spot strong warnings before a severe breakdown.
In terms of the current market, Bitcoin may be approaching its most significant juncture yet, especially since it may signal the start of another dramatic turn of events. The only question is whether it will go in a positive direction or become an investor’s nightmare.
Daily Bitcoin Chart
Because we’re talking about levels, let’s take a look at what’s happened in the last 30 days. For the first time since mid-June, Bitcoin has a three-day green daily candle. The current bullish momentum is strong, and other major indicators are also flashing green.
For the first time since May 19, the 20-period EMA completed a turn, with the 20-MA inclining. In June, a crossover occurred during a downturn, but rising over it during an upswing adds to the optimistic story.
Now let’s discuss levels. $30,000, $36,500, and $40,000 are the three essential thresholds at stake. We’ve talked about these price ranges before, but the situation had shifted slightly by the time we went to press.
The $30,000 price bracket has shown tremendous strength. Following the 19th of May, Bitcoin’s price tested the support range three times, each time resulting in a robust bounce. This implies that there may not be a fourth time. It is quite rare for an asset to bounce back four times from a support range. As a result, another collapse may result in a $24,000 flood.
As a result, the strategic significance of the $36,500 resistance increases. On the 12th of June, Bitcoin was worth $36,500. It’s been almost a month, and the level was only measured once within the 30-day timeframe. Breaking $36,500 and closing a daily candle above this level would give patient investors a fresh lease on life.
The OTC influx may ramp up as well, and investors may want to play it safe in order to preserve this level. As a result, the immediate aim remains $36,500, before moving on to $40,000.
Last but not least, there’s the $40,000 mark. This level has been significant because it was also the market top during the October-February surge, following which Bitcoin fell somewhat. It’s still significant because a move above $40,000 invalidates the $30,000 re-test and diminishes the chances of another $30,000 re-test.
A rally in altcoins would be triggered by a move above $40,000, and the entire industry would gain from the increased buying demand.
Is it possible to predict when volatility will peak?
Cryptohopper trading bot’s CEO and Co-Founder, Ruud Feltkamp, recently informed us,
“Because the $30k mark for Bitcoin is a psychologically significant barrier, it’s not surprising that the price bounced a lot. Elon Musk and Tesla also bolstered it by announcing that they will accept Bitcoin once more, which is highly tactical now that the price is “down.” It’s worth noting how similar the current bull market is to the one from 2017. If the current bull cycle follows the same pattern, we should be nearing the bottom and seeing a big bounce back to levels above $50,000.”
As a result, Bitcoin maybe rounding the final bend before the axis of its price path shifts once more. Keeping an eye on the market is more important than ever.