Bitcoin [BTC] saw an unusually bullish rise by mid-June. However, after a week of gains, the bulls began to tire, but not sufficiently to give the bears the upper hand. Their tug-of-war came to a halt as Bitcoin goes below $30k.
The price movement on lower period charts, such as H4 or shorter, revealed several possibilities for traders to capitalize on. The most recent one follows BTC’s big refusal at $30.8k.
Furthermore, on the hourly chart of the BTC/USD pair, there was a breach below a connecting positive trend line with support at $30,750.
A Short Notes
- Bitcoin’s advance from the $31,000 and $31,250 resistance levels are being reversed.
- On the hourly chart of the BTC/USD pair, there was a decline below the underlying bullish trend line with support at $30,750.
- The pair might continue to fall and test the $30,000 support level.
How Bitcoin Fall to $30k Can Trigger a Risk-to-Reward Movement?
The short-term trend that Bitcoin formed in recent weeks was displayed in orange on the 4-hour price chart. It was increased from $29.8k to $31.5k. Bitcoin goes below $30k, which would activate stop-loss orders from purchasers and deceive early bears into selling BTC. Following the collection of this liquidity, an upward reversal might begin.
Bitcoin’s climb above $31,000 and stopped in the early hours of Tuesday, July 11th. This was not a favorable indication for bulls hoping for a move toward the range highs because it showed the bears’ strength.
The brief incursion over $31,000 functioned as a liquidity grab before prices reversed course and seemed to be heading down to the range lows. Around the time of publication, BTC was trading around $30.4k, and the RSI indicated that the bullish impetus had diminished.
CMF also fell quickly but remained over +0.05 to indicate a strong capital influx. Meanwhile, the DMI revealed no clear trend, bolstering the assumption of a range formation.
Buyers can expect another push of the $29.7k-$30k area, with a stop-loss below $29.2k invalidating the range notion. The range heights at $31.5k are the aim.
Short-term Purchasers may be Concerned about the Spot CVDs’ Downward Trend
Long-term Bitcoin investors need not be concerned, as the trend remains favorable. However, for short-term traders, the spot CVDs’ significant decline since 3 July was worrying. It revealed consistent selling pressure behind the crypto king, even as it stabilized around the key $30k barrier.
On the 10th of July, the Open Interest increased, indicating bullish sentiment among speculators. Despite being discouraged later, it seemed possible that more purchasers would be keen to bid BTC if it saw significantly lower period growth.
Bitcoin Price Corrects Lower
Bitcoin goes below $30k in the 100-hourly Simple Moving Average. Strong resistance is located near $30,600. The first significant barrier is at $30,750 and the 100 hourly simple moving average.
It is near the 50% Fib retracement level of the latest slide from the $31,373 swing high to the $30,160 low, which might lead to a retest of $31,000. The next significant resistance is $31,400. Any more advances might pave the way for a move toward the $32,000 barrier level.
More Bitcoin Losses
If Bitcoin fails to break the barrier level at $31,750, it will decline continuously. On the downside, immediate support is at the $30,150 level and the current low. The next significant support is at the $30,000 level, below which a slide to $29,550 is possible.
- Hourly MACD – The MACD is presently accelerating into the negative zone.
- Major Support Levels- It begins at $30,150 and progresses to $30,000.
- Significant resistance levels- It is about $30,750, $31,000, and $31,400.
Closing Thoughts
Bitcoin price decline won’t affect the reward opportunity because the crypto market is always volatile. Although Bitcoin goes below $30k, there are chances that there is a risk-to-reward opportunity that could pop up anytime. There are many chances of prices going up due to Bitcoin halving. We can expect the halving hike in around 4 months.
