In a surprising turn of events, the cryptocurrency market witnessed a sudden sell-off, causing Bitcoin price to plummet by more than 3% from its previous level of $31,750 to $30,290.
The rapid decline has caught many investors off guard and left them wondering about the next target for Bitcoin’s price.
While the exact reasons behind this sudden sell-off remain unclear, one possible factor could be the influence of stronger-than-expected Preliminary University of Michigan (UoM) Consumer Sentiment figures on BTC.
The preliminary data from the University of Michigan’s consumer sentiment index reveals a reading of 72.6, surpassing expectations of 65.5 and June’s figure of 64.4.
Positive consumer sentiment often indicates a healthier economy and can result in increased investor confidence in traditional markets, potentially diverting funds away from cryptocurrencies like Bitcoin.
Following this sell-off, traders and investors are closely monitoring the price levels and market indicators in order to identify the next potential Bitcoin price target.
Bitcoin Price Prediction
Taking a closer look at the technical analysis of Bitcoin, we observe a significant pullback after failing to surpass the crucial resistance level at $31,793. This level presents a double hurdle for Bitcoin’s price action.
Currently, Bitcoin is trading around the $30,300 level, finding support near the $30,000 level, which is further reinforced by an upward trendline. The closing of candles above the trendline indicates a persistent bullish sentiment.
However, potential resistance lies around the $30,411 mark, which could impede Bitcoin’s upward movement.
Thus, we can identify immediate support for Bitcoin around the $30,000 level. If this level is breached, the next support level to watch would be around $29,500.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators are residing in the bearish territory, aligning with the 50-day exponential moving average, which acts as a significant resistance level near $30,750.
A decisive break below the $30,000 level could lead Bitcoin toward the next target of around $29,500, potentially continuing the downtrend to $28,711.
Conversely, if Bitcoin surpasses the $30,400 level, it could pave the way for further upside potential, with price targets of $30,700 and $31,350.
It is important to closely monitor the price action around the $30,000 level as it is a crucial pivot point.
A breach above this level could signal a bullish trend continuation, while a failure to hold above it may indicate a resumption of the downtrend.
The current technical analysis suggests that Bitcoin’s price faces significant hurdles in surpassing resistance levels.
Immediate support is observed at around $30,000, and a breach below this level could lead to further downward pressure towards $29,500.
Conversely, a break above the $30,400 level could open the doors for potential gains toward $30,700 and $31,350.
Traders and investors should closely monitor these key levels to gain insights into Bitcoin’s short-term price direction and adjust their strategies accordingly.
