Bitcoin price prediction as the coin corrects after a sharp rise past $31k

Updated: 06 July 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

After seeing a price crash late last week and some sideways trading over the weekend, the Bitcoin price surged on Monday, reaching a 12-month high at $31,335. However, with the arrival of Tuesday, the price dipped back to the support at $31k. While it initially seemed like the support would hold, the BTC price managed to break it on late Tuesday, July 4th.

The coin started sinking again, finding a new support at $30,650. After reaching this level, Bitcoin tried to recover once again, but unfortunately, its price was stopped from growing after it came close to $30.9k. What followed was another dip that caused BTC to get back toward $30,650. At the time of writing, the coin’s price is $30,660.33. While the support is holding for now, this might soon change.

Looking at the current price action, analysts have observed the formation of a double-top pattern, accompanied by a significant bearish divergence on the weekly timeframe. However, they stressed that the price could surpass the resistance zone, and potentially move back up toward $35,000.

However, they also warn that breaking the coin’s support could lead BTC deep down, likely to $23k.

Another analyst pointed at the formation of the Cup and Handle pattern on the BTCUSDT chart. The pattern typically appears to signal the continuation of a trend movement. The upside shot is, therefore, possible, although it will depend on how low the price drops while forming the handle. The good news is that the levels such as $32,650, $33,600, and $34,550 are still relevant.

Whales are still accumulating BTC

While Bitcoin continues to struggle against resistances and its price suffers strong rejections, this is good news for whales, who have been seeking to accumulate mass quantities of the coin. According to recent data by the on-chain analytics firm, Santiment, the whales have been buying any BTC they could get their hands on for weeks.

In fact, in the past seven weeks, BTC whales and sharks accumulated over $4.7 billion in Bitcoin. Even MicroStrategy, a public custody firm with the largest BTC holdings in the world, started investing in the asset again recently. After the coin managed to hold above $31k, the firm invested another $200 million into the asset.

Of course, the price is dropping at the time of writing, and it already broke the support at $31k. However, MicroStrategy’s move indicates that the company is seeing better days in the coin’s future.

Bitcoin no longer correlated to US stocks

Another interesting development was pointed out by the crypto analytics company Block Scholes. According to the firm, Bitcoin’s fortune is no longer tied to sentiment in the US stock market.

Bitcoin’s correlation with stocks has been known for a long time, and in the past, the asset would sink alongside the stock market. The most notable example was in March 2020, after the global pandemic was first announced. The stock market crashed, and Bitcoin price followed, tugging the rest of the crypto market with it.

However, while the stocks continued to dip for months, cryptocurrencies started recovering in mere weeks, leading to the next major crypto bull run. Now, the 90-day rolling correlation of changes in BTC’s spot price to changes in Wall Street’s tech-heavy equity index, as well as the broader index, has dropped to near zero. This is the lowest the figure has dropped in 2 years.

Launchpad XYZ blows up as investors jump on the new opportunity

As Bitcoin continues to struggle, investors are keeping a watchful eye on the asset’s performance. Meanwhile, opportunity seekers are turning their attention to Launchpad XYZ — a new Web3 project that is holding its presale right now. The project aims to provide tools for crypto developers who wish to engage with the Web3, offering insights, learning, analytics, and strategy tools, all in one place.

Launchpad XYZ (LPX) has already raised over $1.09 million during the presale, selling 1 LPX token at a price of $0.0445. Its next goal is $1.55 million, and the amount raised is approaching this milestone with haste. Once the current phase of the presale ends, the price will climb to $0.046, and it will continue to increase until it reaches the listing price of $0.0565. Interested investors can purchase the token via ETH, BNB, USDT, or credit/debit cards.

Smog (SMOG) - Meme Coin With Rewards

Rating