Bitcoin price seeks higher low as trader forecasts $45K breakout within weeks
Bitcoin will need several attempts, but resistance should ultimately fall to bulls, but a healthy consolidation is also required, market participants explain.
Bitcoin (BTC) traded steady on July 27 after a surge above $40,000 resulted in higher levels broadly holding.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
All eyes on Bitcoin higher lows
Its first trip above $40,000 in six weeks, Bitcoin price action is now attempting to consolidate and form support at a higher low, Cointelegraph contributor Michaël van de Poppe said.
“Bitcoin rejects at the range high, which isn’t strange,” he explained in a Twitter update Tuesday.
A look at buy and sell levels on major exchange Binance confirmed the significance of those price points, with buyer support significantly in evidence only below $36,000. Sellers, on the other hand, remained clustered at $40,000 and above.
BTC/USD buy and sell levels (Binance) as of July 27. Source: Material Indicators/ Twitter
The area immediately after $40,000 remains a decisive hurdle to overcome for Bitcoin bulls, with analysts arguing that doing so would unleash the bull market continuation that so many continue to wait for.
“Did people really expect 45-48k in one day?” popular trader Pentoshi reasoned.
“You broke the downtrend on high volume, you broke back into the range and made a HH on the daily. You teleported to resistance, it could take 2 or 3x to break it but that’s coming in the next weeks imo. Dips are for buying.”
That scenario would place BTC/USD on track to reached $47,000 in August, the minimum — if controversial — monthly close predicted by stock-to-flow model creator PlanB.
Trader: “Most” altcoins have bottomed
Bitcoin’s comedown from local highs meanwhile spelled problems for altcoins.
Ethereum‘s Ether (ETH), the largest altcoin by market cap, dipped 11% following a copycat move to highs of its own at $2,432 on Bitstamp.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView
Many major altcoins fared likewise, with 24-hour losses of 10% or more not uncommon at the time of writing.
“The great part is that altcoins are following suit with Bitcoin and will most likely run towards their other side of the range too,” Van de Poppe nonetheless added in a hopeful forecast, repeating previous conviction about the alt market.
“This means 80-150% run from the lows. I think most of them are bottomed.”