Bitcoin has started July on a low note as traders liquidated massively, taking profits at $36K which sent the top crypto asset tumbling way below the previous crucial $34,400 support level that analysts hoped would hold before the coin could go any further.
On Tuesday, Bitcoin broke out above $36,000 and held above this level for approximately 24 hours before buyers started taking profits on June 30. At the time of press, Bitcoin has lost 2.5% on the day to trade at $32,973.
Next BTC Price To Rely On Technical Analysis
The current pattern indicates that traders are still looking at $30k as the next lower support since it has Bitcoin’s month-long trading range. It has also left analysts relying more on technical aspects of BTC’s price action to determine how the coin will perform next.
According to technical analysts, Bitcoin’s end month pattern is similar to its January 2019 pattern, after it closed the month with three red candles in a row this week. Analyst Plan B said that the following six months will accurately determine the S2F model.
“June closing price $35,037. As far below S2F model as in Jan 2019. Next 6 months will be make or break for S2F (again).”
The stock-to-flow is a number that indicates how many years are required to achieve the current stock at the current production rate and the higher the number is, the higher the price.
Bitcoin’s performance in Q3 2020, Q1 2021, and Q2 2021, had many financial experts and other market speculators predicting that Bitcoin would definitely reach $100,000. Coindesk noted:
“The historical strong second quarter saw #bitcoin rallying to a record $64801 on April 14. Since then, bitcoin is down almost 41%, a record-setting price decline compared to Q2 in previous years.”
What’s next for BTC?
Traders are also wondering whether $100K is still in the picture or if Bitcoin will slip into a bear market first. According to this analyst on TradingView, after a long boring month, Bitcoin is now ready to breakout.
“We are about to break out one way or the other. No more boring Bitcoin very soon!”
Additionally Crypto analyst and trader Rekt Capital said:
“#BTC rejects from the top of this down trending wedging structure falling to breakout. $BTC is still maintaining this structure and the blue diagonal will still be the trend line to watch for a breakout when the time comes.”