Incoming volatility and potential pump

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Bitcoin (BTC) once again fell into familiar territory, trading below the $30,000 mark as investors closely watched its subsequent price trajectory. Over the next few weeks, the asset’s valuation could be heavily influenced by upcoming macroeconomic news, such as the Federal Reserve’s interest rate decision.

Along these lines, according to prominent pseudonymous cryptocurrency analyst FieryTrading on TradingView, in a July 22 article, investors should expect increased Bitcoin volatility this weekend. However, he remains optimistic about the long-term bullish sentiment for the major cryptocurrency.

He noted that despite Bitcoin’s failure to break through the $31,000 position, the long-term uptrend remains intact.

Bitcoin price analysis chart. Source: Trading View

“Whenever this indicator flashes green (= low volatility), the market will take a big step in the near future. The market oscillates between two periods: periods of contraction (now) and periods of expansion (volatility),” he said.

He added that the Federal Reserve’s upcoming interest rate decision indicates that the market could wait for potentially increased volatility, which has also affected traditional financial products.

Elsewhere, another analysis published on July 22 by Tolberti suggested that Bitcoin’s recent price movement indicates a possible bullish breakout. According to analysts, Bitcoin is showing a bullish pennant pattern on the daily chart after a month of consolidation.

He predicted a potential breakout at around $34,000 based on the 0.618 Fibonacci extension. A pullback may follow, but an uptrend to $39,000 is expected later.

At the same time, he stressed that traders should be cautious as a breakout could lead to a drop to $21,000, and taking advantage of a possible breakout with short positions is being considered.

Bitcoin price analysis chart. Source: Trading View

Furthermore, he suggested that the bullish stance on Bitcoin stemmed from the fact that several altcoins were showing signs of a possible breakout in the coming days.

Recent bitcoin underperformance

It should be noted that Bitcoin’s recent underperformance is of concern to some market participants, especially given the presence of significant catalysts. The cryptocurrency market was initially boosted by news of financial giants like BlackRock (NYSE:BLK) depositing spot Bitcoin exchange-traded funds (ETFs), which briefly lifted Bitcoin above $30,000 in June.

Additionally, the pro-crypto ruling in the Ripple case saw Bitcoin hit its highest value of the year. However, despite these positive developments, Bitcoin has struggled to maintain high prices.

One of the factors contributing to this struggle is the ongoing regulatory uncertainties surrounding cryptocurrencies, which continue to put downward pressure on prices. In general, the crypto market has been relatively calm, indicating a lack of positive momentum.

While long-term Bitcoin holders may remain confident in the cryptocurrency, their influence alone is not enough to keep prices high.

bitcoin price analysis

Currently, Bitcoin is struggling to maintain its position above the $29,000 level, avoiding a free fall. At press time, the asset was trading at $29,897, registering a decline of more than 1% over the past seven days.

Seven-day Bitcoin price chart. Source: Finbold

According to technical analysis, one-day gauges extracted from TradingView indicate neutrality. A summary of the gauges recommends a neutral sentiment score of 9, while the moving averages indicate a “sell” rating of 6. On the other hand, the oscillators also align with “neutral” sentiment, registering a score of 8.

Bitcoin technical analysis. Source: Trading View

Overall, the current underlying possible trigger for Bitcoin is the next Fed policy.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.

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