Bitcoin (BTC) sliding down, 12th July, 2021 — bad omen?
On 11thJuly, 2021, Bitcoin did a nice move up to around $35,000, giving bullish traders some hope. That level didn’t hold, however, and a few hours later, it came back down by $2,000, wobbling around $33,000. As of this writing, the first crypto posted a 2.73% loss the day before, off to a bad start this week.
Signs of progress?
There are indicators suggesting Bitcoin will set out on a recovery trajectory in the coming days. These indicators might not seem valid to all traders, especially considering some of the indicators are controversial, but this doesn’t mean you should simply brush them off. Let’s have a look at some of these indicators.
Let’s start with the following 1D chart of Bollinger bands. These bands are technical indicators that allow predicting the movement of digital assets and other currencies.
When you look at the chart, you might notice that Bollinger bands have been getting tighter. The closing distance between the upper band and the lower band is a telltale sign that there is a major move on the horizon.
Another sign suggesting a powerful move to take place soon is the decreasing trading volume in July. On Saturday, 10th July, and Sunday, 11th July, the trading volume was at its lowest point in a good while. The graph below demonstrates this point. In May 2021, the trading volume was at its highest. However, trading activity has waned considerably since then.
Apart from the technical elements, several other factors must be taken into account to successfully predict the upcoming Bitcoin price action. Analysts suggest the market might move due to the Grayscale Bitcoin Trust (GBTC) unlocking event. On Sunday, 18th July, more than 16,000 BTC will be released by the fund.
What will happen in the future?
Does anyone have a crystal ball? Some traders would sure sell their souls for one! Nevertheless, some analysts are better than others at predicting what will happen with BTC in the future.
Experts say the first major resistance is around the $34,000 level, coinciding with the 20-day moving average (MA). It is closely followed by the peak of $35,600 as the 50-day MA. Other significant resistance levels are $36,620, $38,500 and $39,500.
With a 2.73% drop in its value between 11th and 12th July, Bitcoin is off to a bad start this week. However, there is still hope, considering there are strong signs that the biggest coin on the market will launch back up into recovery. The BTC would therefore have every chance of kick starting the second phase of the bull run.