What to know:
- Bitcoin price holds above key support as markets await confirmation of the next major move.
- Analyst says a dip toward $60K could complete a bullish inverse head-and-shoulders pattern.
- A breakout above $66.5K could pave the way for a potential rally toward $74K.
Bitcoin price stayed flat on July 30, even though it was somewhat weak in terms of momentum, while investors kept an eye on how the leading cryptocurrency would manage to stay at critical support levels.
At the time of writing, BTC is trading at $64,498, with a 24-hour trading volume of $45.30 billion and a market capitalization of $1.30 trillion. BTC increased 0.17% over the last 24 hours, showing that buying activity has slowed after recent gains.
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Bitcoin Price Forms Bullish Reversal Pattern
A popular crypto analyst, Ali Martinez, shared his latest technical analysis update on July 30, adding that there was no need for any worry about Bitcoin dropping down to the $60,000 level.
Martinez believes that such a fall could actually assist in completing an inverse head-and-shoulders formation, which is typically considered a sign of a bullish reversal. Moreover, he said that once BTC managed to overcome the $66,500 level, the bullish pattern would be formed, and this would allow Bitcoin to advance to $74,000.
This analysis shows that a temporary pullback does not have to be negative for Bitcoin’s overall prospects. Rather, it can be what is missing for the next phase of the trend.
Bitcoin Price Shows Mixed Technical Signals
Currently, Bitcoin price is at $64,498 and remains not far away from the mid Bollinger Band of $64,458.98, having recovered from the previous decline. The upper Bollinger Band stands at $66,288.72, whereas the lower one is situated at $62,629.24.
As the gap between the two lines decreases, it means that the price range narrows down. Such conditions usually precede the trend reversal, but it still depends on which side takes over.
However, the Moving Average Convergence Divergence (MACD) indicator reveals that the upward momentum has become less strong.
The MACD indicator is currently at 188.25, which is below the signal line at 281.23, and the histogram is now negative at -92.97. This suggests weaker buying momentum, and it may be possible for a consolidation phase or decline to occur if demand does not pick up.
What Comes Next for Bitcoin Price?
The coming days’ price action could decide Bitcoin’s future direction in the shorter term. A strong break higher above $66,500 would reinforce the positive technical setup as noted by Ali Martinez and shift the focus to $74,000.
But in case the selling momentum gains steam, Bitcoin could test the $60,000 handle initially. As per the existing technical pattern, it could serve as a critical point of validation of the overall uptrend.
At the moment, Bitcoin is trading above crucial support levels, but the market needs confirmation before launching its next big move.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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