Bitcoin price is still stuck, but breakout may follow soon

Admittedly, it’s not very exciting at the moment with bitcoin (BTC). The price has continued to move mostly sideways for the past 24 hours and the range is getting tighter. The release of the Federal Open Market Committee (FOMC) minutes yesterday also brought little attention. Although many old investors still hold their BTC firmly, there is still a significant lack of new demand and investors due to the enormous fear in all financial markets.

Bitcoin price drops by 0.5%

The bitcoin price was again rejected at $30,500 on Monday, then fell back to $29,000 with a dip to $28,700 on Tuesday night. By yesterday morning, bitcoin briefly recovered above USD 30,000, but this time it did not go above USD 30,200.

Bitcoin then fell slightly again, but the price already found support around $29,400. For the rest of the day and night, bitcoin continued to fluctuate back and forth in an increasingly narrow range. Bitcoin was rejected around $29,850 each time while the lows got a little higher. At the time of writing, BTC is back at the same low at around $29,600 on KuCoin and $27,700 on Bitvavo.

Update: Bitcoin already lost traction at $29,600 shortly after publication and is currently falling to $29,000

How long will bitcoin be locked in?

This pattern is not expected to continue for much longer, even though that was the sentiment a week ago. A significant increase in volatility usually follows when such a triangular pattern forms. We may see another outbreak before the weekend.

Bitcoin is currently consolidating around USD 29,600, but should bitcoin break out of this range, as Decentrader points out, the next support is now just below USD 27,000 and resistance just above USD 31,000. In the medium term, however, meanwhile, we have to take into account the 200 weeks moving average around $22,000. On the upside, bitcoin needs to break $36,000 for an eventual trend reversal.

FOMC minutes no impact on BTC

It is striking that stock markets such as S&P 500 and Nasdaq reacted more positively to the publication of the FOMC yesterday. minutes† Both stock markets turned green, suggesting a possible further decoupling between the assets. Meanwhile, the US dollar index (DXY) is also starting to move mostly sideways.

The FOMC minutes show that the Federal Reserve is likely to continue its current policy of quantitative tightening (QT) will continue in the coming months. That could very well mean that these riskier markets will only really have room again in the autumn. Nevertheless, the markets may be able to discount this fear sooner.

HODL’ers are holding their BTC

Meanwhile, the number of addresses with at least 1 BTC is reaching a new all-time high of 846,000, analyst On-Chain College reports:

The number of bitcoin whales is also increasing. There are now 184 more addresses with 100 to 1,000 BTC compared to three months ago, analysis firm Santiment reports:

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