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Bitcoin Price Analysis: BTC Broke to the Downside, Is Another $30K Retest Incoming?

Summary:
BTC lost 6% of its value today as it fell through the lower angle of a short-term symmetrical triangle pattern. As mentioned here yesterday, a huge price move was anticipated due to the decreasing amounts of trading volume, along with reaching the apex of a symmetrical triangle. Indeed, the move came, and the bearish breakout saw BTC dropping almost 00 since yesterday’s high, around K. Today’s level set a fresh low for July 2021, and it is also the lowest price bitcoin has seen since June 27th. Before the breakdown, BTC was consolidating inside the short-term triangle pattern – amid the 20-day moving average line for the past days (blue line as shown on the following daily chart). However, bitcoin’s price failed to maintain above it, which led to the sharp dump

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BTC lost 6% of its value today as it fell through the lower angle of a short-term symmetrical triangle pattern.

As mentioned here yesterday, a huge price move was anticipated due to the decreasing amounts of trading volume, along with reaching the apex of a symmetrical triangle.

Indeed, the move came, and the bearish breakout saw BTC dropping almost $3000 since yesterday’s high, around $35K. Today’s level set a fresh low for July 2021, and it is also the lowest price bitcoin has seen since June 27th.

Before the breakdown, BTC was consolidating inside the short-term triangle pattern – amid the 20-day moving average line for the past days (blue line as shown on the following daily chart). However, bitcoin’s price failed to maintain above it, which led to the sharp dump today.

Following the breakdown, BTC is now below the ascending trend line that has supported the market since June 22nd. It can be facing more short-term bearish action, as the long-term resistance trend line on the daily RSI got rejected once again, preventing the asset from establishing the first lower-high since February 2021.

With today’s drop, all eyes now rest on the support at $31,500, where BTC double-bottomed in the last week of June and was able to reclaim $36.6K shortly after.

Further below lies the significant support around the $30K mark, which has successfully defended the cryptocurrency six times since May. As a reminder, bitcoin has traded between $30K and $42K since the liquidation crash on May 19th. A breakout from this range should lead to BTC’s next major move.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $32,270, $31,500, $31,185, $30,600, $30,000.

Key Resistance Levels: $32,700, $33,520, $34,000, $35,000, $35,900.

Looking ahead, the first support lies at $32,270 (today’s low). This is followed by $31,500 (double-bottom support from June), $31,185, $30,600 (downside 1.618 Fib Extension), and $30,000.

On the other side, the first resistance now stands at $32,700 (early July support, which now turned to resistance). This is followed by $33,520, $34,000 (20-day MA), $35,000, and $35,900 (50-day MA).

The daily RSI is trending lower, indicating increasing bearish momentum within the market in the short-term. The 4-hour RSI also made a new low in July. It broke beneath the 40 level as the bears retake control while the trading volume has been increasing lately (but still very low compared to May 2021).

Bitstamp BTC/USD Daily Chart

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BTC/USD Daily Chart. Source: TradingView.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD 4-Hour Chart. Source: TradingView.

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