• Bitcoin prices failed to break resistance above $30K and have started the inevitable retreat, falling back below it once again.
• Renowned analyst Willy Woo said that “Mean reversion forces now dominating Bitcoin price action” on July 7.
• Other analysts have echoed the sentiment that further downsides could be on the cards.
Bitcoin Prices Drop Below $30K
Bitcoin prices have dropped below $30,000 during the Friday morning Asian trading session. The asset had lost 1.5% on the day in a fall to an intraweek low of $29,750. This is the first time this month BTC has dropped below $30K following four separate rejections at resistance since it crossed this price barrier in June 2022.
Analysts Predict Cool Down Phase
Renowned analyst Willy Woo commented that “Mean reversion forces now dominating Bitcoin price action” and suggested that „Sideways or down is easier than up“ and that „fundamentals suggest we need a phase of cool down to reset things.“ Other analysts agree with this sentiment, suggesting further downsides could be on the cards.
Double-Top Chart Pattern Formation?
The second major failure to break resistance at $31K could result in the formation of a double-top chart pattern which would see Bitcoin prices retreat to support down at the high $24K zone again.
Elevated Levels of Exchange Interaction Recorded
Glassnode reported that short-term holders are recording elevated levels of exchange interaction, suggesting they are selling off their positions as BTC approaches key psychological levels such as $30K.
Retail Adoption on Rise Despite Price Slump
Despite these warnings from analysts, retail adoption for Bitcoin remains strong as more people become aware of its potential as an investment vehicle and store of value due to its limited supply and decentralised nature.