Bitcoin remains vulnerable to a move below $30,000.

Bitcoin remains vulnerable to a move below $30,000.

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.

Blue lines – bearish channel

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.

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