The price of Bitcoin is breaking out of a month-long sideways channel with the top.
In recent days, we have seen a breakout of the side channel, which in theory is a positive factor in the context of a possible trend change. On Saturday we had a classic re-test, which was forecast in earlier analyses. This was the moment when the earlier resistance turned into support lines.
Purely theoretically, this opened the way for further increases – even towards $28,000. So the range is quite large for potential increases. However, it is important to keep in mind the still not so good global economic situation and macroeconomic factors. On Wednesday, July 27, the decision on raising interest rates in the US will be published. It is worth watching how the cryptocurrency market will react to these decisions. Taking this into account, there is still the possibility of further declines, but the market’s reaction on Wednesday will be key.
Ethereum
The ETH exchange rate, after an upward bump in the cryptocurrency market, is recording much faster, larger increases than BTC. At this point, a test of the current resistance at the level of $1700 is expected. The vicinity of this price has previously been treated as support several times, and will now be tested from below as resistance. In this price area, a supply reaction towards $1400 can be expected.
If the ETH exchange rate reacts negatively to the interest rate decision, it is possible that we will see that the recent increases were only a form of correction before further declines, so a return to lower levels – be it $1,000 or even $800 – is still possible.
Binance Coin
The BNB exchange rate has not seen much volatility in the past week. Currently, the price is struggling with the value in the vicinity of $265, and in the next few days it is likely to converge with the downward trend line, which can be determined on the daily chart. This will be the point at which a downward reaction can be expected – however, it is worth keeping in mind if BTC and the rest of the cryptocurrency market reacts positively to the news in the coming week – BNB could break out the top and give a positive signal to the market.
If the price crosses the top of the downtrend line, Binance Coin could rise to $300 and then to $325. Conversely, if the price reacts downward to the downtrend line, it will suggest that the bear market is not letting up all the time. The above text is in no way investment advice and only the subjective analysis and view of the author.
