Bitcoin Price Struggles as Bears Attempt to Take it Below $30,000

Bitcoin (BTC) failed to break the $31,500 resistance and has since retraced to a range between $30,300 and $30,800 over the past few days. The cryptocurrency has also been unable to reclaim the $31,000 area, leading some to believe that Bitcoin bears may still have the upper hand.

Despite recent signs of strength, bitcoin’s inability to overcome key resistance levels has left many investors wary. The digital currency’s failure to break out of its current range suggests that it may be vulnerable to further losses in the near term.

Liquidity grab drags bitcoin down

Bitcoin has seen significant growth since June 15, gaining 25% in nine days. however, According According to crypto analyst Justin Bennett, recent price action suggests that a pullback may be in order.

BTC has piled into the long rally, but as Bennett noted, bitcoin typically doesn’t offer a free ride to latecomers to the party. A drop above $30,000 from current levels would make sense, and price action on the 8-hour time frame looks very similar to the April highs.

Bitcoin closed above $30,400 on an 8-hour trend line in April, but closed below it within the next few candles. While BTC has outperformed this time, it has already declined below $30,400 on the 4-hour time frame. The next few 8-hour candles will confirm whether this breakdown sustains or not.

If so, Bennett believes a return to the $28,000 area is possible to end the delayed BTC period. How the bitcoin price action develops if and when it tests $27,000-$28,000 will determine where BTC is headed in July.

On the other hand, a sustained break above $31,000 would suggest that the bulls will remain in control and expose $32,500.

Nevertheless, despite the uncertain market conditions, the current rally in bitcoin will not end until the bulls lose the $30,000 line.

Historical data shows that if bitcoin can consolidate and hold this key level of support, it has a lot of potential to break higher and mark new yearly highs.

Conversely, the $29,500 support level will be the next floor to watch if bitcoin succumbs to bearish pressure. If BTC breaks below this level, the decline could continue, potentially leading to a further decline towards the $27,300 line.

Despite potential downside risks, the bitcoin market is receiving positive news with Fidelity and BlackRock’s applications for spot exchange-traded funds (ETFs). The approval of these ETF applications could further boost the current price action and potentially reach new yearly highs.

Bitcoin is currently trading at $30,600, showing a modest increase of 1.4% over the past 24 hours.