Bitcoin price slackened to the downside as traders await the $24.5k support to be maintained. While there is little change in the market, analysts are making critical predictions for Bitcoin.
BlackRock Bitcoin ETF plan revives markets
cryptocoin.comAs you follow, Bitcoin bounced around $1,000 from the previous day’s lows. Popular trader Skew tracks price action around the major exchange Binance. Accordingly, it reveals compliant purchasing efforts at low levels. Sellers then approached $26,000.
This rise coincided with the news that the world’s largest asset manager BlackRock has applied to list a spot Bitcoin exchange-traded fund (ETF). According to Michaël van de Poppe, founder and CEO of trading firm Eight, this contrasts positively with the series of negative events related to crypto regulations over the past 10 days. “Blackrock’s ETF application is bullish for Bitcoin,” the analyst says.
It’s surprising that the major parties suddenly stepped in a week after all the SEC’s crackdown on crypto. They just want to rule the markets, it’s that simple. But overall, there are some positive signs for the markets.
BTC price may avoid $23,000 ‘staged’ price
When it comes to BTC on short timeframes, traders remain cautious due to more downside risks. Van de Poppe says lows around $24,500 should be held.
At the same time, trader Crypto Tony points out that lows around $24,500 are maintained.
“In my view, nothing has changed,” continues Mustache, another analyst. Zooming in on the weekly chart, the analyst comments:
Fake exits are always possible. However, it is worth noting that BTC has returned to a falling wedge. This means retesting the Inverted Head and Shoulders Pattern as a Falling Wedge.
In this context, Mustache refers to the inverted head and shoulders model that emerged last year. Earlier this month, trader Mikybull Crypto suggested that a successful settlement would trigger a run up to $40,000.
BTC bears have short-term technical advantage
According to Kitco senior technical analyst Jim Wyckoff, Wednesday’s market-wide pullback resulted in July Bitcoin futures prices hitting a three-month low in early US trading on Thursday. “BTC bears generally have the short-term technical advantage,” Wyckoff said. It gained more strength late this week. The price downtrend is solidly featured on the daily bar chart. The path with the least resistance for prices is from the horizontal to the bottom.”
‘Hinge’ formation on Bitcoin price chart
Veteran trader Peter Brandt warns that the short-term outlook is showing signs of weakness. The analyst points to a “Hinge” formation on the BTC chart. In this context, “four closes within 3/10 of the 1% range. This is the definition of price equilibrium. ‘Hinge’ behavior,” he says.
“Hinge” is a term traders use to describe the moment when a major trend reversal in BTC is about to happen. Brandt also shared another post on Thursday highlighting that the BTC price is “down for now.”
Bitcoin price follows an inverse head and shoulders pattern
Market analyst Caleb Franzen highlights several technical indicators that the Bitcoin price has fallen below. Accordingly, it provides additional information on the weakening bull case.
Technical analyst Gert van Lagen also provides a macro perspective on where Bitcoin stands compared to previous cycles. Lagen states that Bitcoin is currently retesting the neckline of an inverse head and shoulders pattern.
At work Reasons for Bitcoin price rally!
BlackRock is believed to have a strong chance of getting the first spot-based Bitcoin ETF approved by the SEC due to its political influence and network. According to many experts, new capital inflows have the potential to be the catalyst for the next bull run. “For BlackRock to issue a BTC ETF would be the best thing that could happen to BTC,” said Mike Novogratz, CEO of Galaxy Digital. Accordingly, the news is likely to have created a bullish mood in the market.
In addition, Bitcoin hodlers continue to show historically high faith. On-chain Axel Adler Jr says total BTC inflows across all exchanges are currently at their lowest. He notes that this shows that Bitcoin holders are in no rush to sell their coins.
Bitcoin dominance is on its way to over 50%
Bitcoin dominance in the crypto market is approaching 50%. Experts think this could have significant implications for altcoins. If the historical, volatile trend between Bitcoin and altcoins continues, an increase in Bitcoin dominance will mean a bearish trend for the altcoin market. The analyst, nicknamed Evca Wolf, says there is an opportunity for emerging trend traders to choose the right altcoins for the next bull market.
Bitcoin price and stock market repeat history
Bitcoin price has been following a downtrend for weeks as the stock markets are enjoying growth. Earlier this year, the situation was reversed when US banking failure threw the S&P 500 Index down. Meanwhile, BTC performed well. Since then, the stock market has evolved to correlate negatively with the crypto market and Bitcoin. Also, the correlation fell to the lowest point since December 2022.
The traditional market is still doing well after allaying fears of “sell in May”. In this environment, Bitcoin price dropped below $25,000, marking a three-month low. The negative correlation of 0.55 will remain valid until the momentum of one of the two assets changes.
As analyst Dan Gambardello noted, such was the case in 2019 when the Bitcoin price fell by about 34% while the stock market was rising. However, the cryptocurrency market has started a recovery attempt. This refuted the claims that the crypto market “was in the dust of the stock market”.
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