Bitcoin has remained below the $30,000 zone for weeks on end, unable or unwilling to cross this threshold.
CoinMarketCap data shows that the cryptocurrency is barely holding on to the $29,000 zone, and is trading at losses on the daily and weekly timeframes.
However, what if there were glaring signs that BTC is actually bullish, and may just be on its way to registering new highs?
Let's see what we do know about Bitcoin's price action.
BTC is having trouble getting up from its current slump. However, on-chain data shows that amid the overextended consolidation, the Bitcoin network is doing exceptionally well.
According to a tweet from Twitter analyst, Ali Martinez, Bitcoin's on-chain data shows that the network is improving overall.
While the price of the cryptocurrency has been on the weaker side, with a correction from $32,000 to $29,000, Ali mentioned that the number of new BTC addresses being created is actually rising.
"This bullish divergence between price and network growth hints at a stable long-term BTC uptrend." the analyst noted in the tweet. "Buy the dip!"
BTC's consolidation phase over the last few weeks has been the object of trader frustration and confusion.
However, BTC is now flashing a golden cross pattern according to a TradingView post from analyst and crypto trading expert TradingShot.
If you didn't know what a golden cross is, golden crosses occur when a short-term moving average (like the 50-day moving average) crosses a long-term moving average (like the 200-day moving average).
Golden crosses are highly bullish patterns that signal the start of a fresh price rally.
TradingShot brought up two other instances of this golden cross. And once these crosses occurred, the 200-day moving average becomes a crucial support level that holds the price of BTC higher up.
How high can Bitcoin go by next Thursday?
According to Michael Van De Poppe, the founder and CEO of the trading firm, Eight, BTC may drop very soon.
However, this drop will be followed very quickly, by a price recovery.
Given that the CPI (Consumer Price Index) release is coming up by next Thursday, the analyst notes that we may see a drop to $28,000 or thereabout.
However, if BTC does not drop, a break above $29,700 would be the perfect buy signal.
In all, BTC may break out of this consolidation phase when the CPI gets released.
BTC is currently suffering from weak volatility and absent volumes, especially in the weekly timeframe.
However, according to a tweet from analyst DaanCrypto, Bitcoin may be expecting a lot of volatility at the end of August.
This volatility may hit hard because of the ETF deadlines expected in the first week of September.
Recall that BlackRock and several other companies filed for BTC ETFs with the SEC in July.
In the first week of September, these firms will either have their requests granted or rejected, causing massive volatility for BTC, whichever way things go.
It turns out that the general faith in BTC remains as strong as ever.
According to a tweet from the lead on-chain analyst at Glassnode, _Checkmate, Bitcoin's long-term holder supply has now hit an all-time high.
The analyst notes that the cryptocurrency's long-term holder supply now sits at 14.59 million BTC, which is also 75% of the total circulating supply.
This goes a long way, to show how much faith investors have in BTC. If 75% of the cryptocurrency's circulating supply belongs to investors who refuse to sell, it means that BTC is strong both fundamentally and technically.
BTC has been sailing through rough waters over the last few weeks, owing to high inflation, rising interest rates, and a potential recession.
In the charts, the cryptocurrency has been consolidating in a range around the $29,000 zone since late July.
According to the chart above, the RSI shows that the bears may have the upper hand.
The RSI sits at 42.88 and is miles below the neutral zone. However, it might be comforting to note that BTC is still bullish over the long-term perspective.
According to the chart above, even if BTC falls below the $29,000 zone, it might hit the ascending trendline, somewhere around the $28,000 zone (the same thing analyst, Michael van de Poppe said).
It might be helpful to wait for a while and see what Bitcoin does with the $29,000 zone.
If a clean break below $29,000 occurs, the $28,000 zone might be a good entry point for a long trade.
Conversely, if BTC bounces off the $29,000 zone, anywhere above $29,700 might be a good entry point for a long trade.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.