Daily Market Recap – BTCUSD $30,000 is at risk

Seven in 10 institutional investors plan to invest in or buy cryptocurrencies in the future, although price volatility is a drag on new entrants, according to a study by Fidelity.

About 90 percent of those looking to invest in the future said they expect their company or client portfolios to include investments in digital assets in the next five years. This includes direct investments or exposure through shares of cryptocurrency companies or other investment products.

Despite the mainstream interest, cryptocurrency prices and trading volumes have collapsed, and Bitcoin has fallen about 53 percent since its April peak. The firms surveyed cited price volatility as the biggest obstacle for investors, followed by the lack of fundamental data needed to assess the value of tokens.

From a technical perspective, BTCUSD is once again attempting to break through the key $30,000 mark. As a reminder, the market has been in a stabilization phase within a range for several weeks. Thus, prices are evolving between the two limits of the range located at $42,000 and $30,000. As a result, a break of one of the two boundaries should kick off the next directional movement.

As long as the $30,000 support resists selling pressure, Bitcoin is in an accumulation phase. It is also possible to have a slight bearish excess to come and test the low point of the wicks around $28,800. In the short term, it is difficult to see the bull run resuming in this context, which would require a return of buyers and institutions combined with an increase in volume. Of course, a bullish signal with a flowing and impulsive candle would potentially lead to a bullish U-shaped recovery towards $33,850 and then $44,850. However, in the absence of a strong technical signal, sellers could also drive the wedge to rally to the next supports in the days to come.

(Chart Source: Tradingview 20.07.2021)

An incursion below the $30,000 - $28,800 price zone would pave the way for a possible bear market. BTC would risk deepening its losses and accelerating its decline towards the $25,950 level. On the other hand, we should not rule out a scenario where Bitcoin would come back to support its former historical highs near $20,000. To sum up, it is necessary to be patient and intervene in key areas with a plan of action and technical signals.

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.