Hope springs eternal for many crypto investors after the market saw positive price movement on July 7, alongside gains in the traditional market.
Daily cryptocurrency market performance. Source: Coin360
The green day in the markets comes amid a backdrop of increasing jobless claims in the U.S., which is a possible signal that “the pressure on wages may have now peaked” according to Harris Financial Group Managing Partner Jamie Cox. According to Cox, a continuation of this trend could result in financial conditions that are “tight enough to allow the Fed to throttle back on the scale of rate increases.”
Data from Cointelegraph Markets Pro and TradingView shows that after trading near $20,400 for a majority of the day on July 7, the price of Bitcoin (BTC) spiked nearly 7% in the afternoon hours to hit a daily high of $21,860.
BTC/USDT 1-day chart. Source: TradingView
As the crypto faithful attempt to navigate the choppy waters of the crypto winter in search of a market bottom, here’s what several analysts are predicting could be next for Bitcoin.
The trend remains negative
Twitter user “Roman” posted the following chart noting that “Many are becoming euphoric and bullish as we have repeated similar candle patterns for the last 8 months.”
BTC/USDT 1-day chart. Source: Twitter
In Roman’s view, this is just the latest in a series of fakeouts that will trick a lot of traders into believing the bottom is in while in reality, the trend remains negative.
“Volume decreasing in a range is consolidation for continuation of trend. Not to mention thousands of inflows to exchanges before each top.”
A recovery above $23,000 would be bullish
Another trader who holds the view that the trend remains decidedly negative is pseudonymous Twitter user Gilberto, who provided the following chart noting that Bitcoin’s price recently broke out of a pennant formation.
BTC/USD 4-hour chart. Source: Twitter
“Bullish above $23K, for now daily trend is still downwards.”
As for what the potential price path for Bitcoin could look like if it continues along the downward trend, market analyst Crypto…