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Bitcoin Price Prediction – Bears Eye sub-$32,000 as Indicators Flash Red

By:
Bob Mason
Published: Jul 2, 2021, 09:34 UTC

It's been yet another bearish morning for Bitcoin and the broader market. A Bitcoin move back through to $34,000 levels would be needed to deliver support to the broader market,

Cryptomania

In this article:

After another mixed day for the crypto majors on Thursday, it’s been yet another bearish morning for Bitcoin and the broader crypto market.

At the time of writing, Bitcoin, BTC to USD, was down by 1.74% to $32,971.0. A mixed start to the day saw Bitcoin rise to an early morning high $33,983.0 before hitting reverse.

Falling well short of the first major resistance level at $34,842, Bitcoin slid to a mid-morning intraday low $32,700.0.

Steering clear of the first major support level at $32,493, however, Bitcoin found support to revisit $33,000 levels before easing back.

Key through the early hours was avoiding the first major support level and a return to sub-$32,000 levels.

BTCUSD 020721 Hourly Chart

The Rest of the Pack

It’s been a bearish morning for the broader crypto market.

At the time of writing, Chainlink was down by 4.51% to lead the way down.

Bitcoin Cash SV (-3.40%), Binance Coin (-3.33%), Ethereum (-3.39%), and Litecoin (-3.77%) also struggled.

Cardano’s ADA (-2.16%), Crypto.com Coin (-2.58%), Polkadot (-1.55%), and Ripple’s XRP (-2.72%) saw relatively modest losses through the morning, however.

Through the early hours, the crypto total market rose to an early morning high $1,380bn before falling to a low $1,325bn. At the time of writing, the total market cap stood at $1,334bn.

Bitcoin’s dominance fell to an early low 45.98% before rising to a high 46.44%. At the time of writing, Bitcoin’s dominance stood at 46.38%.

For the Afternoon Ahead

Bitcoin would need to move back through the $33,781 pivot to bring the first major resistance level at $34,842 into play.

Support from the broader market would be needed, however, for Bitcoin to break back through $34,000 levels.

Barring a broad-based crypto rebound, the first major resistance level and Thursday’s high $35,069.0 would likely cap any upside.

In the event of an extended crypto rally, Bitcoin could test resistance at $37,000 levels. The second major resistance level sits at $36,130.

Failure to move back through the $33,781 pivot would bring the first major support level at $32,493 back into play.

Barring an extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$30,000 support levels. The second major support level at $31,432 should limit the downside.

Looking beyond the support and resistance levels, we saw a bearish cross this morning, with the 100 EMA crossing through the 200 EMA. This followed yesterday’s bearish cross, where the 50 crossed through the 100 EMA and 200 EMA.

A further pullback by the 50 EMA from the 100 EMA and the 200 EMA would be a bigger drag on Bitcoin and the broader market.

Key going into the afternoon will be to move back through to $34,000 levels to give the bulls the upper hand.

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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