According to a technical analyst from Wolfe Research, Bitcoin (BTC) price is expected to face more downside pressure before exiting the current trading range.
Rob Ginsberg, who monitors the trends and patterns of Bitcoin's price movements, said in a note that the coin has been stuck in the upward and downward $2,000 range since late June, with $30,000 being the midpoint of that range.
Ginsberg wrote in his note, “Can it finally break and go higher? Definitely, but probably not until it drops further, as the trend shows.”
Ginsberg pointed out that over the past two years, BTC has “expanded” after a tight consolidation more than eight times. However, he said that current market conditions are not conducive to a bullish move:
“Tech stocks are down, interest rates are rising, and the dollar is rising again. These short-term hurdles are likely to drive the price down and keep volume low in BTC. However, if history gives us an indication, we can expect it to be sudden and severe when the price finally rises.”
Ginsberg highlighted the $31,000 level as the key resistance level to watch. If Bitcoin fails to break above this level, it could test the lower end of its range at $28,000 or lower.
*Not investment advice.
