BTC Approaches Apex Consolidation, Huge Move Looming

BTC is down 6% overall on the week, so far, as it is currently struggling to stay above $ 32,000. The main cryptocurrency has traded in a long period of consolidation between $ 30,000 and $ 40.5,000 since the candle of the surrender in mid-May and between $ 30,000 and $ 35,000 during last month.

This consolidation can be seen as a bearish triangle as shown below on the daily chart.

Similar to the past few weeks when BTC tested $ 30-31,000 lows, this week’s low sits in the middle of the same support line – $ 31,000 as of Friday.

This critical range has supported the market on numerous occasions since mid-May. Thus, it will be a crucial support to defend to avoid a fall below $ 30K.

BTC is now rapidly approaching the top of the triangle, as seen in the following daily chart, indicating potentially colossal movement coming in over the next few days, if not hours.

From a technical point of view, Bollinger Bands are very tight, as well as decreasing volume. Fundamentally – the market is anticipating the GBTC unlock event, which begins today – July 18th.

Looking at the chart in 4 hour data, BTC has been trading in a descending price channel since early June. It found support at the lower angle of that price channel on Friday and rebounded from there to sink into resistance at $ 32,300. This formed a short-term ascending price channel (white lines) in which BTC is now trading.

So far over the past month, Bitcoin has been able to ‘fix’ the weekly candle with a decent price hike on Sunday, which has left a long wick down. It remains to be seen whether this current Sunday will end in the same way.

BTC price support and resistance levels to watch out for

Key levels of assistance: $ 31,700, $ 30-31,000, $ 29,400, $ 28.6,000

Key resistance levels: $ 32,300 – $ 32,700, $ 33.5,000, $ 35,000, $ 36,600.

Looking ahead, the first support is at $ 31,700 – the lower angle of the near-term ascending price channel. This is closely followed by a critical support area in the middle of the $ 30-31,000 range, which is the lower edge of the triangle.

If $ 30,000 breaks out, the next support is $ 29,400 (1.272 Fib extension on the downside – blue), followed by $ 28.6,000, the June low.

On the other side, the first resistance is between $ 32,300 (short term resistance) and $ 32,700 (upper angle of the triangle). This is followed by $ 33.5,000 (upper angle of descending price channel and 20-day MA), $ 35,000 (50-day MA) and $ 36,600 (end of June high).

The daily RSI remains below the midline and below the long-term descending trendline (blue line), preventing momentum from creating a high since February. A break of this blue line would indicate that momentum is finally ready to increase in the longer term.

Bitstamp BTC / USD Daily Chart

Bitstamp BTC / USD 4 hour chart