Bitcoin volatility has dropped dramatically. Bitcoin price is trading above $30,000 and below $40,000 since May. Since late June price is stuck between $31,000 and 38,000. Price has formed a short-term bearish channel and as long as we do not see any sign of strength, I expect Bitcoin to eventually break support of $30,000 and push lower towards $25,000 mostly because of activation of sell stops.
The upper channel boundary resistance is at $34,600. Support is at $31,180. Price is making lower lows and lower highs after the high of $36,500 on June 29th. Breaking above $36,500 is crucial for bulls as this will push price higher towards $41,000. Until then price is vulnerable to breaking lower support levels.
The material has been provided by InstaForex Company - www.instaforex.com