Bitcoin’s price movement has been erratic this week, but it could be extended and gain more ground. It continues trading in the green with signs of continued short-term appreciation.
Bitcoin is trading at $23,200 as of the writing. There have been 9% profit over the week, and 1% in the last 24hrs.
Bitcoin provided greater clarity over its price direction in the last week. Arcane Research reported that Bitcoin has slowly broken above its critical resistance levels at $23,000, $20,700 and $20,000 respectively. This is consistent with the conventional definitions of uptrend as provided by Investopedia.
When the overall direction of an asset’s price is rising, it is called an uptrend. Each successive peak or trough in an uptrend is greater than those found before. An uptrend is made of swing lows that are higher than swing highs. The uptrend can be considered stable as long as the market is making higher swing lows or higher swing highs.
Arcane Research noted the following on BTC’s recent bullish momentum and its capacity to break previous resistance turning them into critical support:
Bitcoin’s price currently stands at an intriguing level. In mid-June, $23k was resistance. It could be turned to support this week. The price will hold at the current level and mark another low, which could be considered a bullish sign.
Arcane Research believes that Bitcoin will continue to flirt with $24,000 resistance, and possibly break through it. The potential for a bullish trend to continue would be signaled by a target at $27,000 or $28,000 in shorter time frames.
Bitcoin is likely to sustain its gains
Bitcoin’s price bullish potential has been capped by macro-economic factors, the collapse of major crypto companies and ecosystems, and an increase in selling pressure from BTC miners. According to QCP Capital, the latter had to sell more BTC stock in order to pay off their debts due to higher energy prices.
Bitcoin’s price will not break the $28,000 mark. The trading desk coincides with Arcane Research, BTC’s price might revisit those levels but it’s unlikely to see another massive rally like the one experienced in 2020.
On the contrary, BTC’s price might trade sideways as it recovers higher levels and has it records lower lows at three critical support zones: $20,700, $17,500, and $10,000. QCP Capital says that this latter support zone will likely be reviewed at some time in 2022.