The cryptocurrency market along with the tech-heavy Nasdaq saw a bit of positive price action on July 5 amid a backdrop of rising recession concerns in the United States.
Data from Cointelegraph Markets Pro and TradingView shows that an early morning onslaught by bears managed to drop Bitcoin (BTC) to a daily low of $19,309 before reinforcements arrived to bid the price back above support at $20,400 during the afternoon.
BTC/USDT 1-day chart. Source: TradingView
Here’s what several analysts are saying comes next for the top cryptocurrency and what support and resistance levels to keep an eye on moving forward.
Looking for a continuation to $23K
A bullish take on the recent Bitcoin price action was offered by independent analyst Michael van de Poppe, who posted the following chart as a follow-up to a previous Tweet that suggested Bitcoin needed to crack the resistance zone at $19,700 to continue higher:
BTC/USD 15-minute chart. Source: Twitter
The analyst said:
“This one did crack the resistance and ran towards the next area of resistance at $20.3K. I’m expecting #Bitcoin to consolidate for a bit here, but breaking the next resistance zone is a trigger for continuation towards $23K and a summer relief rally.”
Possible pullback to $15,800
A decidedly less optimistic take on the recent price action was provided by crypto analyst and pseudonymous Twitter user il Capo of Crypto, who posted the following chart highlighting several “fake pumps” that resulted in lower highs:
BTC/USD 4-hour chart. Source: Twitter
Il Capo of Crypto said:
“Lower highs all the time. Pumps have low volume and they look corrective. Main target remains $15,800-16,200.”
Double bottom on the BTC chart
A final bit of hopium was offered by crypto trader and pseudonymous Twitter user Captain Faibik, who posted the following chart and highlighted the importance of a daily close above $20,000:
BTC/USD 1-day chart. Source: Twitter
Captain Faibik said:
“Double Bottom & Bullish Divergence Both in Play… If Bulls Reclaimed the $21.6K Resistance, Expecting +30-40% Relief RALLY.”
For those looking for more reassurance that the market may be nearing its bottom for the current bear cycle, pseudonymous Twitter user Bitcoin Archive posted the following chart of Bitcoin’s MRVR Z-score, which has been a reliable indicator of past market bottoms:
Bitcoin MVRV Z-score. Source: Twitter
Bitcoin Archive explained:
“#Bitcoin is now deep into the “green zone” – which has signaled market bottoms on 4 occasions.”
The overall cryptocurrency market cap now stands at $911 billion and Bitcoin’s dominance rate is 42.7%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.