- Bitcoin’s price action this year fits perfectly in an inverse cup and handle pattern
- If the price breaks below the handle, BTC may begin trading within the $24k-$29k range
- But bullish signs do exist that can prevent such a scenario from happening
JAIPUR (Coinchapter.com) – The bulk of this year’s Bitcoin’s price trajectory fits into an inverse cup and handle pattern. Currently, BTC is trading near the bottom of the handle. And according to a Malaga, Spain based-crypto trader, the bearish mood could intensify if the Bitcoin price breaks below the handle.
Keith first posted his technical opinion regarding BTC’s near-term momentum on July 2. He updated the same today. He expects Bitcoin to follow “3-4 more weeks of range-bound” behavior. A Twitter user replied with, “Rubbish, I expect this is plain wrong!”. To which he promptly replied, “Can’t be that rubbish if my order filled at $32500” (with a snapshot of the executed trade).
As mentioned above, Keith had opened a long position on BTC at the $32,500 price level at 3X leverage. And his whole analysis was based on how the particular trade pans out. But could BTC find itself trading below $30k in the $24k-$29k range?
Bullish Bitcoin Technicals And Fundamentals
Bitcoin’s price is in a downtrend. Ever since BTC crashed from near $65,000 levels to $30,000, the top cryptocurrency tested new supports and failed to reclaim the $41,000-$42,000 range. But as far as the flagship cryptocurrency’s RSI (Relative Strength Indicator) is concerned, the story is different. As opposed to BTC’s overall bearish trend, the benchmark crypto asset’s RSI is in an uptrend.
This type of technical setup points to an upcoming bullish scenario. It is an indication that a particular asset is oversold, its bearish pressure has completely died down, and that it’s ready to chart news highs. Probably this is the reason why Keith opened a massive long position on Bitcoin with a 3X leverage.
Also, on a fundamental level, more Bitcoin reserves have shifted from exchanges to individual wallets. As per data from Glassnode, the on-chain market insights provider noted,”#Bitcoin exchange balances have started to show signs of sustained outflows since 22-June. From the 2021 lows, ~ $BTC was deposited to exchanges. Over the last three weeks, approx 40k $BTC have been withdrawn, 28% of what came in.”
Exchange outflows are sure shot indications of sentiment turnover from bearish to bullish. The trend shows that Bitcoin HODLers are rising and are holding onto their coins for substantial price rallies. To generate exponential wealth, not short-term profits.
Whether a full-fledged bullish scenario plays out for Bitcoin or not depends on bulls being able to surmount the crucial $41,000-$42,000 resistance range. Unfortunately, before that happens, it looks like BTC will continue to trade sideways, as Keith predicted.