Bitcoin’s Price Struggles at the $31,000 Resistance Level
Bitcoin is demonstrating a struggle at the $31,000 level after an impressive rally spurred on by consistent institutional interest. Last week saw Bitcoin decisively breaking through the $27,000 - $28,000 resistance zone. However, its momentum decreased later in the week when it hit the resistance area between $29,600 - $31,000.
As the week came to a close, Bitcoin flirted with the $31,000 mark, unveiling signs of buyer fatigue. Currently, the cryptocurrency’s bullish trajectory faces a tough hurdle, struggling to surpass the range of $30,500 - $31,000.
Key Levels for Bitcoin’s Future Movement
To maintain its upward trajectory, Bitcoin must mark a robust daily candlestick at the $31,000 level. A formation of this pattern could indicate a subsequent target range of $32,600 - $34,700, taking into account the decreasing momentum from April to June.
While Bitcoin's bullish perspective remains unchanged, the crucial support level to monitor during potential drawbacks is $29,650. Closing below this value could hint at a correction period, potentially leading to a further drop to $28,000 - $28,500.
Predicting Bitcoin's Market Corrections
The Stochastic RSI indicator may confirm if a correction is indeed underway. If this indicator slips below 80, Bitcoin may commence its downward journey toward temporary support levels. However, if the $28,600 support level persists, Bitcoin may see a period of lateral trading within the $29,600 - $31,000 range.
Such a chart setup would ease the Stochastic RSI, offering Bitcoin buyers a breather to rally for the next upward leap.
Institutional Interest: A Key Driver for Bitcoin’s Rally
Continuous institutional interest, which kindled Bitcoin's recent rise, is essential for sustaining its positive movement. The SEC's approval of a new Bitcoin ETF over the past weekend underlines a further softening of its stance towards cryptocurrency, particularly Bitcoin. Backed by comments from Fed Chairman Powell, these factors lend buoyancy to Bitcoin, increasing the likelihood of enduring bullish potential if Bitcoin remains above $29,600 this week.
Ethereum's Performance Amid Market Recovery
In June's early phase, Ethereum saw a dip following the SEC's crackdown. However, it found support at Fib 0.618 (1,660), serving as an ideal correction level against the previous bullish wave. It has since participated in a market-wide recovery, albeit with less momentum than Bitcoin.
Ethereum currently faces resistance within the $1,870 - $1,900 range, with the closest resistance zone averaging around $1,945. A daily close beyond this could bring the $2,030 resistance level into focus.
Ethereum’s Future: Reclaiming the $2,000 Mark
Reaching the $2,000 level would be a bullish sign for Ethereum, potentially sparking a move toward the $2,250 - $2,450 range. However, maintaining support at $1,885 is crucial. A potential drop below this level makes the average price of $1,820 critical support.
If Ethereum can stay above $1,800 during a possible pullback, there's potential for ETH to break the resistance line and approach the $1,950 level, inching towards the short-term target zone around the $2,000 mark.
