Bitcoin (BTC): A 5% correction before the upturn? July 24 technical analysis

The leading cryptocurrency continues to establish a consolidation phase around the $30,000 mark. The expected announcement of the FED’s interest rate decision on Wednesday should bring further movement to the market. Although investors anticipate an imminent bullish rally, a slight correction in bitcoin (BTC) could emerge.

Potential correction towards $28,000:

Signals pointing to a bullish recovery are gradually beginning to emerge on the BTC price. For example, XRP’s breakout above the Ichimoku cloud is a good omen for bitcoin (BTC). Nevertheless, a bearish scenario could emerge before then, resulting in a 5% drop for Bitcoin.

Indeed, the strong rise seen since mid-June has lost momentum around $31,000, mainly due to profit-taking around the psychological $30,000 zone. Before resuming its bullish run, it is possible that new lows (DIPs) will occur in the short term on bitcoin (BTC). In fact, the decline since July 12 could continue. In this context, a potential correction to around $28,000 for bitcoin is conceivable, i.e. a 5% drop before the uptrend resumes.

A positive reaction of the bitcoin (BTC) price at this support level would confirm a major rise, making this zone an interesting buying point in anticipation of the next bull-market.

• Entry: $28300 ;

• Stop: $27200;

• Target: $40,000.

Long-term bullish outlook for Bitcoin (BTC):

On a broader scale, this potential 5% correction would not be significant. Indeed, a growing number of technical indicators are pointing to an imminent bull-run, the triggering of which is only a matter of time. A recent analysis by Titan of Crypto also suggests an imminent bullish recovery. The analysis is based on the weekly Trend Follower Moving Averages indicator. According to it, “outside of a Black Swan event, once the Trend Follower Moving Averages indicator turns green, the game is on for Bitcoin (BTC)”.

In fact, as the chart above shows, every time this indicator turns green, BTC experiences a remarkable bullish performance, with the exception of a black swan (an unpredictable and exceptional event). As a result, a major upswing is on the cards, potentially propelling the price of Bitcoin (BTC) to as high as $50,000.