With a strong transactional volume, Bitcoin has reached a market capitalization above $460 billion. The outlook for this token is quite dim since the price action hasn’t tested or breached any major resistance zone that other cryptocurrencies have breached already. Neither the 100 EMA curve nor the $25500 resistance has been tested even once. With weaker price action, the sentiment feels as if buyers have planned not to test the strength of sellers at the historical level.
The possibility of celebrating a higher percentage gain depends on whether BTC can make a breakout by the end of August or if it just prolongs the price action creating an even stronger sentiment of booking profits and pushing value down. Holders should show some resolve and continue with positive confidence.
Bitcoin has shown tremendous strength and resolve to break its stereotypical trading range but comes short of its potential to surpass the 100 days exponential moving average. Technical indicators showcase a consolidative stance with opportunistic buying action. Is it the right time for you to buy Bitcoin? Read our Bitcoin forecast to know!
Bitcoin’s positive trajectory benefits the entire crypto market, but the price action has remained rather slow and strong. To make up for the gains, BTC holders had to wait for a month. The resistive price action complemented by rejection at the top combined with buyers losing interest has transformed the price band of $25500 as a strong immediate resistance.
Based on the last one-month trendline, a breakout can be expected by the end of August 2022. Transaction volumes have remained high with a strong emphasis on profit booking rather than maintaining an uptrend. RSI has fallen back to similar zones of 57, with the MACD indicator close to marking a bearish crossover. Breaching the current trendline will initiate a delayed uptrend for Bitcoin, requiring even stronger buying action to compete with the sellers and profit bookers.
So far, even the 100 Days exponential moving average has remained above the resistance line with a very small probability of a downtrend from such a strong vantage point. For buyers, this price could be the last buying range before a breakout, and a strong rally is witnessed in the cryptocurrency world.
Just as the daily charts, weekly price action confirms $25000 as a strong resistance since prices are taking a reversal as sellers set out on booking profits. A 1% decline is seen in the current week, which is just one day old; the outlook, even for a weekly basis, can’t be predicted with higher accuracy. Still, some consolidation can be expected before buyers take control of BTC price action.