BTC price continues to show high volatility. On Friday, it wiped out all of the week’s gains and returned to around $30,000. With the current move, bitcoin (BTC) could go either way. Here’s what to watch out for…
Bitcoin (BTC) is having difficulty initiating an uptrend?
The cryptocurrency has shown great volatility over the past week. On Thursday, it hit nearly $31,900 on the back of supportive macro data to the upside. However, that 4.5% gain was erased on Friday, with a steep drop towards $30,000. Currently, bitcoin (BTC) is stabilizing around this psychological zone.
While the investment community is puzzled, Santiment seems to have a believable explanation. Indeed, in a tweet posted on July 14, the analytics firm claims that the community is divided on where bitcoin (BTC) is heading next. Santiment adds that one should be careful of strong upside or downside incentives at this time. Indeed, the price of BTC tends to move in the opposite direction of crowd expectations.
This assumption is illustrated in the graph above. Indeed, a strong downside incentive caused bitcoin (BTC) to explode on Friday. After this rise, the number of upside incentives increased significantly. This immediately led to a decline of more than 4.75% on Friday.
If this downward pressure continues, BTC could potentially see a correction down to $28,000.
A potential correction down to $28,000?
With Friday’s explosive decline, there is a possibility that the price of bitcoin (BTC) will drop to the key support level of $28,331. However, Titan of Crypto claims that as long as the price of BTC remains within the $29,800-$30,000 range, no direction is confirmed.
According to his analysis, a bullish recovery is still possible if BTC reacts positively to the daily Kijun, an indicator that can play a major support role. On the upside, a breakout of the $30,668 level could signal the start of a strong upside.
On a significant decline, the support at $28,331 should keep the bullish structure of bitcoin (BTC) going. Additionally, the $50,000 target could be reached through the influx of billions of dollars into the crypto market if ETFs were approved.
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