BTC/USD Price Analysis – July 13, 2023

Daily Price Outlook

Bitcoin (BTC) faltered in its attempt to break through a significant resistance level, retreating just as it neared the mark. This pullback has seen BTC revert to its trend of range-bound trading, suggesting that short-term holders have opted to hold on to their assets instead of cashing in on profits.

Analysts continue to assess the conditions needed for the leading cryptocurrency to take a decisive step.

Bitcoin Pulls Back from $31,000; Expert Provides Analysis

Following the release of the Consumer Price Index (CPI) on Wednesday, Bitcoin's price experienced a slight uptick, nearly reaching the critical resistance point of $31,000 before dropping again.

According to Yann Allemann, co-founder of Glassnode and CEO of Swissblock Technologies, this "immediate response to the CPI data release" can be attributed to traders, likely large investors, setting buying and selling limits to control volatility.

Altcoins Set to Rally as Bitcoin's Capital Rotation Looms

If this theory holds, we might be on the cusp of an altcoin season. This term refers to the phase when profits from Bitcoin (BTC), Ether (ETH), and/or new capital, potentially from an ETF, flow into alternative cryptocurrencies.

As a result, Bitcoin's market dominance decreases due to the shift in capital, and its supremacy in terms of market capitalization shrinks. This increase in market share is a typical outcome of the altcoin season.

Despite the influence of macroeconomic factors and other market dynamics, Bitcoin's price remains stable, oscillating within a specific range. Ethereum's price is mirroring this static movement. These patterns suggest that short-term traders prefer accumulating assets over booking profits.

This trend is vital as it implies that altcoins like Ripple (XRP) will bear the brunt of regulatory crackdowns on their ilk, as long as the two leading cryptocurrencies continue their stable performance.

BTC/USD Price Chart – Source: Tradingview

BTC/USD - Technical analysis

Bitcoin's price experienced difficulty in garnering positive momentum after the release of US CPI data. Currently hovering under $30,500, there looms a possible risk of a decline towards the $29,850 mark.

Despite efforts to ascend above the resistance zone of $30,500, Bitcoin met resistance around $30,850, prompting a downward shift. The price subsequently broke beneath a linked upward trend line and the support at $30,500, plummeting to an approximate low of $30,230.

At present, Bitcoin is stabilizing its losses beneath $30,500 and the 100-hourly simple moving average.

Near-term resistance is spotted around the $30,400 level and the 100-hourly simple moving average, succeeded by the $30,550 area.

A breach above the $30,550 mark could instigate bullish momentum, potentially propelling Bitcoin towards the $30,850 resistance and then to the major resistance at $31,000.

If Bitcoin is unable to surpass the $30,500 resistance, it may undergo another downturn. Immediate support is located around the $30,230 level, followed by the next crucial support close to the $30,000 mark.

Additional declines could drive the price towards the support zone of $29,850, and potentially even lower towards $29,400.