After displaying significant volatility by surpassing the previous minor swing high, the Bitcoin price is held within a narrow region just above $30,000. While the bears are failing to drag the levels below $30,000, the bulls also seem to be incapable of lifting the levels above $30,500 in the short term. So, considering the current trade setup, it appears that the $40,000 target may certainly not be viable for the BTC price this month. But Why?
Soon after the price soared above the descending consolidation close to $25,000, the bulls lifted the levels beyond $31,500. This was when the target at $40,000 was activated, but the recent price movements indicate less participation by the bulls, which may eventually prevent the price from forming a new ATH this month. However, before the beginning of a fresh upswing, the price is likely to undergo a drop below the major support soon.
The BTC price’s compressed price action has compelled the Bollinger bands to get squeezed to a large extent. The bands are going parallel to each other, experiencing excess pressure from both ends, which may eventually cause an explosion. Looking at the MACD, the signal line, as well as the MACD line, are going parallel to each other, maintaining a descending trend as selling pressure prevails. Besides, the RSI is maintaining a steep descending trend, which may surely drag the prices lower.
Also Read : Bitcoin Price Prediction 2023, 2024, 2025: Will The BTC Price Rise Again?
However, the price could eventually flip its trend, but can it form a new ATH in July 2023?
Well, considering the current trade setup, achieving new highs may be a tedious job for crypto at present. However, as per the prediction of a popular analyst, Michael van de Poppe, Bitcoin can still rise up to $38,000, but only after sweeping lows below $29,000. Hence, the BTC price may test the lower support first and lead to a significant upswing, which may mark new highs for 2023.
