According to an expert, Bitcoin needs to find a way to exit the current range and enter a more skeptical environment.
Bitcoin’s Recent Drop
The recent decline in Bitcoin (BTC) has raised doubts about its potential recovery. The technical indicators have also pointed to a potential sell-off.
After hitting the $31.5K mark, Bitcoin lost about 4% in the last 24 hours. According to market analyst, CoinMarketCap, the leading digital asset was trading at around $29,510.
Adam Farthing and Collin Howe, who are the co-founders of B2C2, noted that the current market sentiment is not favorable for Bitcoin. Without a catalyst to the upside, the price could still remain range bound.
Price Action
The price action might have been triggered by the support at the $32,500 and $31,400 levels. According to IntoTheBlock, a data analytic firm, a potential bullish reversal was likely triggered by the resistance.
On the other hand, it seems that there is not a significant selling pressure on Bitcoin at the $32.5K level. This suggests that the digital asset could still test the $36K resistance. More than 300K addresses have reportedly bought Bitcoin between $31.4K and $32.5K.
According to Mike McGlone, a senior commodity analyst at Bloomberg Intelligence, the $30K resistance was emerging as a potential support level for Bitcoin. However, the Federal Reserve’s continued interest rate hike could prevent the price from rising further.
Despite the recent decline, Bitcoin still remains in a range between the $28K and $32K levels. It was affected by various factors, such as the interest rate hike and the collapse of the UST stable coin. According to a market analyst known as Tajo Crypto, the price of BTC is still not out of the woods yet. He noted that the bear market is still on.
A sustained period of consolidation is often followed by either a downward trend or an upward trend in the market. Because of this, the transformation of BTC into a more long-term investment will probably take some time.
Upwards Potential
Bitcoin emerged from a bear market and overcame the resistance it faced on June 8, according to data from TradingView and the CoinTelegraph Markets Pro. Additionally, Bitcoin overcame the resistance it faced.
The price of Bitcoin had been climbing steadily over the course of the previous day, averaging daily gains of approximately 6 percent. But once it passed the $32,000 threshold, people started feeling pessimistic, and the price started going down.
The price action was characterized by a classic Bart Simpson structure, which emerged on hourly timeframes and was present throughout the trading session. Traders who are dissatisfied with the current market sentiment have resorted to using this strategy in an attempt to alleviate their frustration.
The price action displayed a typical Bart Simpson structure, as stated in a tweet that was published by Michal van de Poppe, who is a contributor at Cointelegraph. It featured a trend line that was falling, and it swept all of the low points.
If the price of Bitcoin stays around $29,500 for an extended period, it might be a good idea to take some profits and try for a small bounce. At the time of writing price of cryptocurrency giant is $31.117
