Cryptocurrency investors are still waiting for Bitcoin (BTC) to make a breakthrough above $30,000, triggering a surge in price. However, the lack of sufficient liquidity in the cryptocurrency market is prioritizing consolidation of the largest cryptocurrency between $29,000 and $30,000. Here are the two potential scenarios for Bitcoin, highlighted by technical analysis.
Bitcoin Holds Above $29,000 Despite Curve Finance
Bitcoin price broke the falling wedge pattern that caused a debate among technical analysts on July 28th, pushing the price above $29,500 towards the European trading session. However, this move by buyers was not enough to trigger an uptrend. While the cryptocurrency market struggled to digest the hack attack on Curve Finance (CRV), a stablecoin exchange, which resulted in the theft of millions of dollars worth of cryptocurrencies, Bitcoin managed to remain calm.
The largest cryptocurrency is currently trading at $29,393, slightly above $29,500 after pulling back from levels just above. The resistance level set by the Exponential Moving Average (EMA) at $29,428 is limiting upward price movement, preventing the price from surpassing $30,000. In this context, it is expected that the Bitcoin price may revisit the support level at $29,000 and gather fresh liquidity before continuing its upward movement.
Investors may want to maintain their long positions in BTC, knowing that the Moving Average Convergence Divergence (MACD) indicator is giving a buy signal. Furthermore, the movement of the blue MACD line above the red signal line, accompanied by movement above the average line (0.00), can strengthen the buying signal.
The fact that the price remains below $30,000 after the breakout of the falling wedge formation indicates that there is still a long way to go to maintain investor interest, such as retesting the downward trend line or $29,000.
Potential 10% Upside for Bitcoin
Well-known cryptocurrency analyst Captain Faibik pointed out the presence of an expanding formation that could potentially lead to a significant uptrend of up to 10% for BTC on the 12-hour timeframe.
However, buyers need to be cautious, considering the possibility of a death cross formation that could occur if the price drops below the 100-day Exponential Moving Average (EMA) and the 200-day EMA. Unlike the golden cross, the death cross is a bearish formation and its formation can be a sign that the path of least resistance for the price is downwards.
Currently, Bitcoin’s ability to remain above $29,000 indicates that a breakout to the upside and a rise to $35,000 is imminent. However, there is also a possibility of a drop to $28,000, which could provide a buying opportunity. On the other hand, such a drop could cause panic among buyers and result in a further drop to $25,000.
