Bulls remain confident in BTC's price stability
$20,000 level trades remain above the bulls in BTC, who believe that its price will not rise or fall outside of a range for six more months.
The cryptocurrency market was relatively quiet on July 5 as the ecosystem digested the fallout from Three Arrows Capital's scandal and Voyager Digital announcing that it has filed for Chapter 11 bankruptcy protection.
Cointelegraph Markets Pro and TradingView data showed that the price of Bitcoin (BTC) oscillated around the $20,000 support level throughout the day, ranging from a low of $19,775 to an intraday high of $20,480 on $25.48 billion in trading volume.
Several analysts have given their opinions on what may happen next with Bitcoin, and where to watch for possible price support and resistance levels if there is a sudden change in price.
The repeating pennant pattern is visible.
Crypto analyst and pseudonymous Twitter user Moustache drew attention to the following chart, which shows the similarity between each of Bitcoin's pullbacks that have occurred since November 2021.
Moustache said, "It's not that big of a deal."
“$BTC has done the same pattern every time, but each descending triangle has gotten smaller and smaller? Another bearish breakout and the target would be between $14,000 and $16,000.”
Market analyst Peter Brandt also recently noted the repeating pennant pattern on the Bitcoin chart, but stopped short of predicting which way the price will move when it completes.
When it looks like a pennant and acts like a pennant it is often a pennant $BTC pic.twitter.com/O7RtnvFSp0
— Peter Brandt (@PeterLBrandt) July 5, 2022
As the market continues to seek a bottom, the number of addresses is increasing
In the past few months, Bitcoin price has been the focus of much discussion on crypto Twitter.
According to cryptocurrency research firm Delphi Digital, Bitcoin has now closed below its 200-week average for four consecutive weeks, a development that has historically "preceded market bottoms."
In the case of Bitcoin traders expecting a fast recovery, Delphi Digital noted that "this is the longest BTC has remained below its 200 weekly average" and highlighted that "Bitcoin's weekly correlation coefficient continues to remain inversely related to the US Dollar as it hit a 17-month low of -0.77."
The fact that the dollar is strong signals that Bitcoin price will continue to lag other assets. However, Delphi Digital noted one encouraging development that indicates BTC adoption is increasing.
The Delphi Digital report stated,
“With prices continuing to fall, the number of BTC addresses accumulating BTC continues to rise. Addresses holding at least one BTC have reached a new all-time high of 877,501.”
Some traders forecast a choppy market for the remainder of 2022
Market analyst and pseudonymous Twitter user KALEO provided a macro analysis of what the past performance of Bitcoin suggests about its future in the following chart.
According to the graph and the forecasted path, Kaleo predicted that the market will continue to trade sideways for some time and will be “defined by a crab market saying above HTF logarithmic support.
Kaleo's statement was:
“Most likely path from here is seeing a base range between $16K - $30K established, that eventually resolves around December when price finally breaks above HTF diagonal resistance.”
At present, the total cryptocurrency market cap is $916 billion and Bitcoin's dominance rate is 42.5%.
