- Michael Pizzino noted in a tweet yesterday that BTC failed to break above $31K for the third time in a week.
- The trader predicted that the next challenge at $31K may result in a bullish breakout.
- At press time, BTC was trading at $30,818.54 following a 24-hour loss of 0.65%.
The crypto trader and educator Michael Pizzino noted in a tweet yesterday that Bitcoin (BTC) failed to break above $31K again. In addition, he stated that the past 100 days in the stock market have been lackluster with nothing more than “minor reversals.” As a result, the trader speculated that it is only a matter of time before something major happens in the crypto market.
#Bitcoin has failed to break out once again, AND there have been over 100 days up in the stock market with nothing more than minor reversals, something has to give…Don't get me wrong, I remain macro-bullish (as I have been for over a year) but, vertical rallies need time to…— Michael Pizzino (@PizzinoMichael) July 4, 2023
Nevertheless, Pizzino revealed that he remains macro-bullish toward the market leader. According to the trader, it is still early days for BTC and it is fair to say that the crypto’s next attempt at breaking above $31K may result in a solid bullish breakout.
At press time, the leading crypto was trading at $30,818.54 according to CoinMarketCap. This was after BTC printed a 0.65% loss over the past 24 hours. Despite the negative daily performance, the crypto’s weekly performance remained in the green at +1.20%.
Daily chart for BTC/USD (Source: TradingView)
From a technical perspective, a bearish ascending wedge pattern was forming on BTC’s daily chart. Should this chart pattern be validated, BTC’s price may be at risk of dropping to the minor support level at $29,500. Continued sell pressure could result in the crypto’s price dropping to as low as $28,490 in the following week.
On the other hand, a daily candle close above the $31K mark within the next week will invalidate the bearish thesis. Investors and traders may just want to take note of the fact that BTC’s latest rejection by the $31K resistance took place yesterday and was the third time in a week that BTC was unable to break above the key price point.
As a result, the possibility of BTC’s price correcting in the coming few days cannot be ruled out. Should this happen, BTC may drop to as low as the 50-day EMA line which was around the aforementioned $28,490 support.
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