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Bitcoin Price Holds $20K, But Analyst Says ‘Expect 6 Months of Sideways’

Trading across the cryptocurrency market was relatively light on July 5 as the ecosystem continued to digest the fallout from the Three Arrows Capital scandal and Voyager Digital announced that it had filed for Chapter 11 bankruptcy protection.

Data from Cointelegraph Markets Pro and TradingView show that the price of Bitcoin (BTC) oscillated the day at the $20,000 support level from a low of $19,775 to a high of $20,480 with a trading volume of $25.48 billion.

BTC/USDT 1-Day Chart. Source: TradingView

Here’s a look at what several analysts have to say about what’s next for Bitcoin and what support and resistance levels to watch out for in the event of a sharp move in price.

View the repeating pennant pattern

Crypto analyst and pseudonymous Twitter user Mustache has pointed out a striking pattern in the Bitcoin chart before the pullbacks that occurred since November 2021. Post The chart below displays the comparisons between each drawdown.

BTC/USD 1-Day Chart. Source: Twitter

Meese said,

“$BTC made the same pattern every time, but each descending triangle got smaller and smaller? Another bearish breakout and target lies between $14,000 and $16,000.

Renowned market analyst Peter Brandt recently highlighted a recurring pennant pattern on the Bitcoin chart, but stopped short of saying which way the price might move once the formation is complete.

The number of addresses grows as the market searches for a bottom

Lately, one of the most popular topics of conversation on crypto Twitter has been trying to predict a bottom in the price of Bitcoin.

According to cryptocurrency research firm Delphi Digital, Bitcoin has now fallen below its 200 weekly moving average for four consecutive weeks, which has historically “marked previous market bottoms”.

Bitcoin price performance since January 2020. Source: Delphi Digital

On whether or not Bitcoin traders should expect a quick recovery, Delphi Digital noted that “this is the longest BTC has broken below its 200 weekly moving average” and highlighted the fact that “Bitcoin’s weekly correlation coefficient continues to be inversely related to the US dollar.” It touched a 17-month low of -0.77.

While a strong dollar suggests that the price of Bitcoin will continue to struggle along with other assets, Delphi Digital highlighted an encouraging development that indicates BTC adoption continues to grow.

Delphi Digital said,

“As prices continue to fall, the number of BTC addresses storing BTC continues to increase. Addresses holding at least one BTC hit a new all-time high of 877,501.

Related: World’s first short bitcoin ETF explodes 300% in days of exposure

Some traders predict the remainder of 2022

Market analyst and pseudonymous Twitter user KALEO provided a macro look at what Bitcoin’s past performance indicates about its future. Post The chart below illustrates past market cycles.

BTC/USD 3-Day Chart. Source: Twitter

Based on the chart and the forecast path provided, the market will continue to trade sideways for the foreseeable future and “the HTF will be defined by a crab market above logarithmic support,” suggested Kaleo.

Kalio said,

“The most likely path from here is a base range between $16K – $30K is established, which will finally resolve in December, when price finally breaks above the HTF diagonal resistance.”

The overall cryptocurrency market cap now stands at $916 billion and Bitcoin’s dominance rate is 42.5%.

The views and opinions expressed herein do not reflect the views of the authors and Cointelegraph.com. As every investment and trading move involves risk, you should conduct your own research when making a decision.