Bitcoin Price Prediction: $31,600 Support Wall Successfully Holds Strong

Daily Bitcoin BTC Technical Analysis

Last Updated July 23rd 2021
2 Min Read
  • The Bitcoin price could have three more bearish sessions, as per the TD detector.
  • The MACD shows sustained negative momentum
  • The Bitcoin price dropped from $34,250 on July 12 to $31,600 on July 16. Due to this fall, BTC managed to flip the 20-day SMA from support to resistance. Prior to that, Bitcoin was hovering horizontally around $34,250 between July 5 and July 12.

    Bitcoin Price Could Drop For Three More Sessions

    Over the last three days, the Bitcoin price has been trending horizontally around $31,650 and is presently sitting on top of the $31,600 support wall. As per the TD sequential detector, BTC could have three more bearish sessions before flashing the red-nine candlestick. The MACD shows sustained bearish momentum, so a further drop is expected.

    Image: BTC/USD daily

    BTC/USD daily chart 071921

    The Bitcoin price needs to defend the support wall at $31,600. As per the IOMAP, almost 685,000 addresses had previously purchased almost 440,000 BTC at this level.

    Image: IntoTheBlock

    BTC/USD volume chart 071921

    Altcoin Sherpa On Bitcoin Price

    BTC/USD tradingview chart 071921

    "$BTC looks terrible on the 1W. Which means it's probably going to pump to 40k in 1 go."

    Bitcoin Price Volatility Squeeze To Ignite Bullish Tornado?

    Crypto analyst William Clemente recently said that Bitcoin is entering its first major volatility squeeze, following the last one in April that pushed prices below their all-time high and triggered the bull rally in July of 2020. 

    According to the analyst, this is a rare occurrence that essentially signals a brewing bull market for Bitcoin. He noted that "a big move [is] coming.”

    Source: Tradingview

    BTC/USD tradingview chart 2 071921

    Popular Crypto Trader ZeroHedge also shares Clemente’s assertion. They said:

    “William beat me to it! We’re officially in a volatility squeeze ladies & gentlemen”.

    The volatility squeeze pattern surfaced after analysts pointed out that BTC was imitating the technical analysis approach. This is known as the Wyckoff accumulation semantics. Essentially, analysts had expected that Bitcoin hits $50,000 in the near term if it successfully follows through the fourth phase of the accumulation. But, ZeroHedge is convinced that Wyckoff has “broken perfect structure on Bitcoin,” implying that that chapter is done.

    On the other hand, some analysts remain optimistic. Investor Lark Davis maintains that the fears are no different from the usual. He puts his faith in the long-term possibilities. 

    “The same people who said Bitcoin would never reach a new high throughout 2018, 2019, and 2020 are the same ones saying that BTC will never reach a new ATH again. We’re going 6 digits, only question is when.”

    Crypto trader and analyst “RektCapital” took to Twitter to say:

    “Despite the recent rebound, BTC is still threatening to lose its multi-month Higher Low. BTC needs to Weekly Close above ~$34600 to secure this Higher Low as support for an 8th week in a row."

    Bitcoin Price Is Expected To Reach These Levels

    A break below the $31,600 support will take Bitcoin price to the $30,000 psychological level. On the upside, BTC needs to break past the 20-day SMA ($33,800) to reach the 50-day SMA ($35,000).