Bitcoin price could be ready for a retrace in the upcoming week
Unfortunately for most traders on the cryptocurrency market, Bitcoin price could not break the local resistance of $22,000 and then started to slowly retrace to $20,000, which then led to a drop below $19,000. Luckily, there are at least three reasons why the market might feel relief next week.
Bitcoin price reaches local support zone
Back on June 17, the daily candle on the Bitcoin chart closed at $18,596, which became the local bottom for the digital gold, which then bounced back above $20,000 the next day. Such strong volatile movement creates a potential reversal point for the future price performance of an asset.
As for now, Bitcoin needs to lose around $200 from its price to reach support. Unfortunately, there is no guarantee that the “orange coin” will bounce right off the mentioned support line, as it still needs a significant volume of inflows.
- Selling volume is fading
The fading volume usually acts as the main reversal indicator for any kind of rally, both bearish and bullish. With Bitcoin, volume profiles show that bears are actively losing their power on the market and might not be able to support the downtrend anymore.
- Potential return of institutional investors
Some reports previously covered the record-breaking outflows of institutional funds from the cryptocurrency market following rising risks and the liquidation of large funds like 3AC. But despite such a large outflow, the market may still see some inflows in the upcoming week.
The underbought Bitcoin and the lack of liquidity could cause a rapid spike in the price of the first cryptocurrency if institutional investors get back into the market.
- Bitcoin Price Slumped Over 37.3% In June – The Biggest Monthly Price Drop Since 2011
- These Four Factors Accounted For 88% Of Variation In Bitcoin Price Over Previous Four Years