Bitcoin’s price continues to face challenges as it hovers below the crucial $30,000 mark, indicating potential declines. In the past 24 hours, the largest cryptocurrency has experienced a 0.5% rollback, currently trading at $29,780.
Investors exercise caution as they navigate the market in preparation for a busy week, anticipating interest rate decisions from major central banks like the United States Federal Reserve, the European Central Bank, and the Bank of Japan.
The US is expected to see a 25-basis points hike in interest rates, coupled with the release of critical economic data, including the “actual GDP in the second quarter and the PCE price index in June,” as Coin Wu of Wu Blockchain reported.
Bitcoin Faces Resistance And Potential Downside
Bitcoin’s price is trading just below the range channel, which has been extensively discussed in recent weeks. The 200-day Exponential Moving Average (EMA), which previously provided support, is now acting as resistance at $29,863. This resistance could push the cryptocurrency further downward, putting pressure on support areas at $28,000 and $25,000.
Technical indicators point towards a potential sell signal for BTC on the four-hour chart. The Moving Average Convergence Divergence (MACD) indicator is likely to show a bearish cross, with the blue MACD line flipping below the red signal line. The Relative Strength Index (RSI) is below the midline, adding further downward pressure on Bitcoin’s price.
Traders are closely monitoring two potential scenarios for Bitcoin’s price this week. The first scenario involves Bitcoin bulls successfully preventing the bearish trend below $30,000 and pushing for a substantial rebound toward $33,000 and $35,000.
The second scenario, however, is more ominous. If economic indicators released later in the week are unfavorable for risk assets investors, Bitcoin may experience losses down to $28,000 and $25,000.
Analyst’s Perspective on Bitcoin’s Potential
Famous crypto analyst Captain Faibik, followed by over 61,000 people on Twitter, suggests that a failure to break above the $31,000 level could lead to a retest of the weekly EMA200, which is around $25,500.
Despite potential challenges, Faibik also offers a glimmer of hope, envisioning a possible successful clearance of the $31,000 level. This could pave the way for a significant bullish rally of around 30-35% in August/September.
Bitcoin faces uncertainty and potential bearish signals amidst market caution and upcoming economic events. Traders closely monitor resistance and support levels as technical indicators indicate a possible sell signal. While challenges persist, analysts also see the possibility of a bullish rally in the future, depending on how critical price levels unfold in the coming days.
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