Bitcoin fell below $30,000 during the Asian trading session on Friday morning. The asset had lost 1.5% on the day as it fell to an intraweek low of $29,750.
It is the first time this month that BTC has dropped below $30K following four separate rejections at resistance since it crossed the price barrier in June 2022.
Renowned analyst Willy Woo said that “mean reversion forces now dominate Bitcoin price action” on July 7.
“Sideways or down is easier than up. Fundamentals suggest we need a cool down phase to reset things.”
Mean reversion forces now dominate #Bitcoin price action.
To the sides or down is easier than up.
Fundamentals suggest we need a cool down phase to reset things. pic.twitter.com/N7USKlwG3d
— Willy Woo (@woonomic) July 7, 2023
Bitcoin faces strong resistance
The second major failure to break the resistance at $31K could result in the formation of a double top chart pattern. If this scenario plays out, Bitcoin prices could pull back to support at the $24K high zone again.
Other analysts have echoed the sentiment that there could be more downside on the cards.
— Cold Blooded Shiller (@ColdBloodShill) July 6, 2023
On July 6, Glassnode reported that short-term holders are seeing high levels of trade interaction. They have sent over 617,000 BTC to exchanges in the last three weeks.
Market sentiment also seems to be waning slightly. The ‘Fear and Greed Index’ has fallen towards neutral territory at 55 from a high of 64 earlier this week.
However, some analysts remain positive, with Josh Rager predicting that “the pullbacks won’t be as deep now” and that people were “overthinking” the notion of a correction to $24K.
Rager said this sentiment regarding a $24K correction was quite popular, but “people are overthinking it.”
He added before saying that if BTC did get back to $25K again, “it won’t be until later in the year after more gains earlier.”
“With the BlackRock ETF having a real chance of approval in mid-August, I am leaning further to the upside before a major pullback. The markets are going to do what they’re going to do, but it’s hard to beat Bitcoin’s current fundamentals.”
However, these comments came when BTC was still trading above $31,000.
Elsewhere on Crypto Markets
Crypto markets have lost another 1.3% on the day on a drop to $1.21 trillion as things cool down.
BTC was hovering around the $30K level at the time of writing, but had posted losses for the past four days, apart from a spike on July 6.
Ethereum was hit even harder with a 3.2% drop to $1,850 at the time of writing, and altcoins were a sea of red.
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This post Analysts Predict Bitcoin Cooldown Phase As BTC Slipped Below $30K
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