- Bitcoin is down another 4.5% this week as the cryptocurrency starts to head toward $31k support.
- It had broken beneath a symmetrical triangle pattern earlier in the week, indicating that there is more downside action ahead.
- Traders are growing nervous ahead of the GBTC shares unlocking.
Bitcoin witnessed another week of downside pressure after dropping 31.5% to hit the current $31,300 level. The cryptocurrency is now down 21% over the month and by a significant 50% over the past three months of trading.
Bitcoin Price Analysis
What has been going on?
Taking a look at the daily chart above, we can see the troublesome week that BTC experienced. It broke toward the downside of a symmetrical triangle pattern on Tuesday and continued to head lower from there. Initially, BTC defended the $31.5K support level, which is the low-day closing price for June. However, today, it seems that the sellers are continuing to put downward pressure on the market as it sinks into the $31.3K level.
The 4-hour chart continues to provide more perspective on what is occurring. Since breaking toward the downside of the triangle on Tuesday, BTC started to form a downward sloping price channel.
The support at $31.5K continues to hold on the 4-hour chart, but the bears are still testing the level. $31.5K is significant support as this is where BTC double-bottomed at the end of June.
The symmetrical triangle breakdown is quite significant as it shows that the consolidation since mid-June failed to establish any momentum and has turned out bearish.
The $30K level still remains the big support to hold before the market continues with any long-term bearish momentum.
Bitcoin price short-term prediction: NEUTRAL
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a daily closing candle beneath $30,000 would be required to turn the market bearish.
Looking ahead, if the bears close a 4-hour candle beneath $31,500, the first support lies at $31,155 (long-term .886 Fib). This is followed by $31,000, $30,680, and $30,500.
Beneath $30.5K, support lies at $30,000, $39,710 (downside 1.618 Fib Extension), $28,775, $28,000, and $27,000 (downside 1.414 Fib Extension).
Where Is The Resistance Toward The Upside?
On the other side, the first resistance lies at the upper angle of the price channel. This is followed by $32,000, $32,122, $33,000, and $34,000.
Added resistance lies at $34,700 and $35,000 (bearish .5 Fib Retracement).