Bitcoin (BTC) faced potential downside pressure over the weekend as the market awaited the candle close on July 23. With BTC/USD struggling to stay above $30,000, traders were concerned about the possibility of further declines. Analysts and traders shared their thoughts on the current price action and identified key levels to watch.
Popular trader Crypto Tony highlighted the formation of a double top pattern on the BTC 3-day chart, indicating a potential reversal. He emphasized two crucial levels to monitor: $25,000 and $20,000, both of which hold significant psychological importance. These levels could serve as critical support levels in case of a downward move.
Another trader, Nebraskan Gooner, noted that BTC/USD had fallen below the narrow range that had been in play for the past month. This suggested that a downside move was likely. Other traders remained cautious and refrained from making specific predictions about whether Bitcoin would break out or break down to test earlier levels.
Toni Ghinea, a popular trader and analyst, anticipated a decisive move for Bitcoin in the coming week. He identified $31,000-$32,000 as a key resistance area and $29,000 as a support level. Ghinea advised caution in case of a breakout, emphasizing that the current price was at the range high. If a drop occurred, he suggested looking at the 27,000-28,000 range as the next key level. However, if Bitcoin broke lower, the possibility of reaching $19,000-$23,000 was still in play.
In addition to the technical analysis, market participants were also anticipating volatility indicators in the coming week as they awaited the Federal Open Market Committee (FOMC) meeting. The FOMC’s decision on interest rates could have implications for Bitcoin’s price. The majority of market sentiment predicted a return to rate hikes following a previous pause.
The CME Group’s FedWatch Tool indicated a 99.2% probability of rate hikes as of July 23. As such, the FOMC meeting was expected to provide further clarity and potentially impact the cryptocurrency market.
In conclusion, Bitcoin faced downward pressure as it struggled to remain above $30,000. Traders and analysts identified key levels to monitor, suggesting that further declines were likely. The upcoming FOMC meeting could introduce additional volatility into the market as market participants awaited the Fed’s decision on interest rates.