- Bitcoin price has continued moving sideways in the past few days.
- It has formed a bullish flag and a double-top pattern.
- Analysts have a mixed opinions on the next Bitcoin moves to expect.
Bitcoin price is at risk of a major bearish breakdown in the coming days. The BTC coin was trading at $30,280, a few points below the year-to-date high of almost $32,000. Despite the recent price action, Bitcoin has jumped by double-digits this year and outperformed key assets like stocks and commodities.
Bitcoin struggles to move above YTD high
Bitcoin has struggled moving above the year-to-date high of near $32,000, signaling that investors are still cautious about the coin. As I wrote on Friday, this price action is mostly because investors now believe that a Bitcoin ETF approval will not have a major impact on Bitcoin prices.
In a note last week, a Wall Street analyst noted that institutional investors have a way of investing in Bitcoin today. For example, they can buy the ProShares Bitcoin Strategy ETF (BITO) or the GrayScale Bitcoin Trust. The two assets track Bitcoin prices.
Now, with Bitcoin hovering at $30,000, an analyst at FxPro warned that the coin could drop to $29,000 in the coming days. And if this happens, it could lead to more downside in the coming days as some buyers start to exit. He said:
“Bitcoin starts the week near $30,200, having fended off attempts to break below a meaningful round level since the second half of last week. “We should be prepared for Bitcoin to go deeper into a correction just below $29,000.”
Not everyone is pessimistic about Bitcoin price. In a note, an analyst at Paradigm said he believes that risk assets like Bitcoin will do well this week. He said:
"Risk assets are also adjusting to the last week’s vicious bond sell-off. As yields top out, I suspect stocks will stabilize. I expect a reversal in yields to trigger the next leg higher for BTC, especially given the underlying weakness in the dollar."
US inflation data ahead
Looking ahead, the next important catalyst for Bitcoin will be the upcoming US consumer inflation data scheduled for Wednesday. Analysts expect the data to show that the headline inflation data dropped to 3.1% in June as it moved close to Fed’s target of 2.0%.
A positive inflation picture came from China, which is slowly moving into deflation. As such, since China is the biggest exporter in the world, there is a likelihood that other developed countries will see lower inflation. Earlier on Monday, data from Denmark and Norway revealed that inflation in their countries was easing.
The reality is that predicting the next Bitcoin price action is almost impossible since it has formed a bearish double top and a bullish flag pattern.
What is certain is that the next price action will have an impact on other cryptocurrencies like KAVA, Solana, BNB, and Avalanche. If it rises, these coins will rise as well and vice versa.
