Bitcoin once again plunged into familiar territory, trading below the $30,000 level. Therefore, investors are watching the next price trajectory closely. In the coming weeks, the asset’s valuation could be significantly affected by upcoming macroeconomic news, such as the Federal Reserve interest rate decision.
Critical week for Bitcoin: Volatility will increase!
Accordingly, investors should expect Bitcoin volatility to increase this weekend, according to a cryptocurrency analyst nicknamed FieryTrading. However, the analyst remains optimistic about the long-term bullish sentiment for the leading cryptocurrency. The analyst states that although Bitcoin failed to surpass the $31,000 level, the long-term uptrend remains intact. In this context, the analyst makes the following statement:
Every time this indicator flashes green (= low volatility), it means the market will make a big move in the near future. The market switches between two periods: periods of contraction (now) and periods of expansion (volatility).
He says the upcoming Federal Reserve interest rate decision will affect the crypto market along with its traditional financial products. The analyst expects this development to potentially increase volatility.
BTC will debut first, then…
Elsewhere, another analysis published July 22 by analyst nicknamed Tolberti suggests that Bitcoin’s recent price action points to a possible bullish breakout. According to the analysis, Bitcoin is showing a bullish pennant pattern on the daily chart after a month of consolidation.
The analyst predicts a potential breakout near $34,000 based on the 0.618 Fibonacci extension. He states that a pullback will likely follow. However, it expects a bullish move up to $39,000 later on. It also reminds us that a breakout will lead to a drop to $21,000. For this reason, he says, investors who are considering taking advantage of a possible breakout with shorts should be cautious.
He also suggests that the bullish trend in Bitcoin is due to several altcoins showing signs of a possible breakout in the coming days.
Bitcoin’s low performance in the last period
It should be noted that BTC’s poor performance is worrying for some market participants, especially given the presence of significant catalysts. The cryptocurrency market was first revived by news that financial giants like BlackRock are applying for spot Bitcoin exchange-traded funds (ETFs). cryptocoin.comAs you follow, this news briefly pushed Bitcoin above $31,000 in June.
In addition, the pro-crypto decision in the Ripple case made Bitcoin hit its yearly high. However, despite these positive developments, Bitcoin struggled to maintain its high prices. One factor contributing to this struggle is regulatory uncertainties surrounding cryptocurrencies, which continue to put downward pressure on prices. Overall, the crypto market is relatively calm. This indicates a lack of positive momentum. Long-term holders of Bitcoin continue to trust the cryptocurrency. However, their influence alone is not enough to sustain high prices.
Meanwhile, XRP has made a huge debut in cryptocurrency trading volumes in the past month. With Ripple’s victory over SCE, XRP surpassed BTC to become the cryptocurrency with the highest trading volume. Even the leading altcoin Ethereum (ETH) was overshadowed by 8%, 21% of XRP.
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