Bitcoin price holds $20K, but analysts say ‘expect 6 months of sideways’ price action

On July 5, trading across the cryptocurrency market was somewhat subdued as the ecosystem continued to process the fallout from Three Arrows Capital’s scandal and Voyager Digital’s announcement that it had filed for Chapter 11 bankruptcy protection.

Cointelegraph Markets Pro and TradingView data show that Bitcoin’s price has fluctuated around the $20,000 support level throughout the day. This ranges from an intraday low of $19 775 to an intraday high at $20,480, on $25.48 billion of trading volume.

BTC/USDT 1-day chart. Source: TradingView

Below is a list of what analysts have to say about Bitcoin’s future and the support and resistance levels that should be monitored in case it moves sharply.

The pennant pattern repeats itself.

Crypto analyst Moustache pointed out a pattern in the Bitcoin chart that was evident prior to the pullbacks which have taken place since November 2021. He posted the following chart showing the similarities between each drawdown.

BTC/USD 1-day chart. Source: Twitter

Moustache stated,

“$BTC has been following the same pattern each time, but each descending triangular has become smaller and smaller.” A bearish breakout would mean that the target would be $14,000 to $16,000.

Peter Brandt, a noted market analyst, recently pointed out the pennant pattern that is repeating on the Bitcoin chart. However, he didn’t say which direction the price might move once it completes.

When it looks like a pennant and acts like a pennant it is often a pennant $BTC
— Peter Brandt (@PeterLBrandt) July 5, 2022
As the market searches for bottoms, the ddress count increases.

One of the most talked about topics on crypto Twitter lately has been trying to predict the bottom of Bitcoin’s price.

Delphi Digital, a cryptocurrency research firm, has reported that Bitcoin closed below 200 per week for the past four weeks. This is a trend that has historically “marked market bottoms.”

Bitcoin price performance since January 2020 Source: Delphi Digital

Delphi Digital asked whether Bitcoin traders should be optimistic about a quick recovery. It noted that this was the longest time that Bitcoin has been below its 200-week average. They also pointed out that Bitcoin’s weekly correlation coefficient with the US Dollar remains inversely related, having fallen to -0.77 after a 17-month low.

Although a strong dollar may suggest that Bitcoin will continue to suffer alongside other assets in the future, Delphi Digital pointed out one encouraging sign that BTC adoption is continuing to grow.

Delphi Digital said,

“With the falling prices, the number BTC addresses that have accumulated BTC is on the rise.” The number of addresses holding at least one BTC has risen to an all-time record of 877,501.”

Related: Exposure to the world’s first Bitcoin ETF explodes by 300% in a matter of days

Some traders forecast a chop for the rest of 2022

KALEO, a market analyst and pseudonymous user on Twitter, provided a macro view of Bitcoin’s past performance. He posted the following chart that shows previous market cycles.

BTC/USD 3-day chart. Source: Twitter

Kaleo based his chart and predicted path that Kaleo provided suggested that the market would trade sideways in the foreseeable future. He also suggested that the market will be “defined” by a crab market claiming to have reached HTF logarithmic support.

Kaleo stated,

“The most likely path to here is to see a base range of $16K-30K established. That eventually resolves around December, when price finally breaks through HTF diagonal resistance.

The total cryptocurrency market is now worth $916 billion. Bitcoin’s dominance rate at 42.5%.

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