We take a look at Bitcoin price as of June 26, 2021. Aside from fundamentals, we rely heavily on technical analysis to assess overall sentiment. This is achieved by identifying key support and resistance levels that traders and investors will be watching in the short term. Based on the current price action, what is the sentiment going into next week?
At the time of this report, Bitcoin is currently trading at $31,525. The largest cryptocurrency by market cap has fallen ~12% over the last week. Additionally, BTC has seen a ~20% drawdown over the last month. Despite the bearish environment, Bitcoin has still grown ~240% over the last year.
In our previous BTC analysis, Elon Musk and his environmental concerns were putting great pressure on Bitcoin markets. Since then, China has continued to crack down on Bitcoin – essentially pushing all mining out of China. With China having about a 50% market share, investors have second-guessed the long-term outlook on the emerging asset. On the contrary, other investors see it as a buying opportunity while miners re-arrange operations and move overseas to places like the United States.
Bitcoin Technical Analysis
Based on the current price action, Bitcoin is still seeing bearish momentum. We saw bullish momentum surface from late May into early June, but that reverted sharply in Mid June following market fundamentals. We believe that China’s discomfort will result in short-term volatility, but this could stabilize shortly.
Bitcoin seems to be eyeing $28,855 support in the short term as momentum is still bearish. As we have discussed before, we need ROC ( rate of change ) to creep above 0.00 before we confirm a bullish shift. As outlined in the chart above, ROC is still below 0.00, which has historically denoted bearish momentum. This most likely means that Bitcoin will not confirm bullish sentiment until $35,650 resistance can be slashed. Once this occurs, we expect a strong influx of buying to occur.
If Bitcoin does indeed fall to $28,855 support, that will be an important level to watch. Rejecting this level could further signal strong downward pressures in the short term.