Bitcoin (BTC) price continues its sideways movements with no signs of directional bias in the short term. Weekly Bitcoin forecast and analysis question the priority of the two extremes of $25 and $40,000.
Weekly Bitcoin forecast points to a potential game changer
The 2023 rally was stalled as BTC price approached a resistance zone stretching from $29,246 to $41,273. This rejection forces BTC into the support zone currently at $27,947. The subsequent increase in buying pressure is pushing the price into the region with local highs ranging from $34,277 to $37,406. This area is the price range in which buyers can start to allocate profits while short traders take positions.
Two different scenarios arise here. The first is a spike that pushed the BTC price to the psychological level of $40,000. As the effect of this long position-weighted catalyst wears off, BTC may begin to collapse. The second aspect is that there is no catalyst and the Bitcoin price continues to fall. Either way, it sets a price range for Bitcoin price in the fourth quarter, from $29,246 to $41,273.
With all that said, technical analyst Akash Girimath has this to say about his quarterly and monthly returns:
If bitcoin price produces a weekly candlestick below the $24,300 support, it will make a lower low (LL) and invalidate the 2023 bull rally. Such a development could trigger a sell-off by panicking investors, potentially triggering an 11% drop to the $21,311 support base. In a dire scenario, BTC could drop as low as $17,311.
Bitcoin didn’t see big moves after BOJ decision
BTC price is holding above $29,000 after the Bank of Japan (BOJ) maintained low interest rates. Meanwhile, Japanese and US government bond yields rose.
The central bank kept its short-term interest rate target at 0.1% and the YCC’s 10-year government bond yield target at around 0%. It also continued its decision to allow the 10-year bond yield to move up and down 0.5% around the 0% target in December 2022. On the Bitcoin side, the price did not see any major moves after the BOJ decision. It continued to trade sideways, largely around $29,250.
However, bond yields rose. This gave negative clues for risky markets, including Bitcoin. The 10-year Japanese government bond yield rose six basis points to 0.56%. Thus, it reached its highest level since January. Its US counterpart rose three basis points to 4.03%. It expanded its gains by 13 basis points per night. cryptocoin.comAs you follow, the BTC price has been falling since the Fed decision of July 24.
