On Saturday, July 22, Early-morning price escalations seemed promising for Bitcoin, but the price later retreated to the hourly support level of 29,727.90 by the afternoon, indicating a potential bearish turn in the local chart.

Falling beneath the critical $30,000 barrier, Bitcoin stirred disappointment among short-term investors who joined the bandwagon during the recent bullish phase. Long-term holders, however, seem unfazed. Glassnode reports a record high 14.5 million BTC held by steadfast investors, signaling the appeal of Bitcoin’s volatility.

Echoes of History – The Bitcoin Halving Cycle
Bitcoin enthusiast Mikybull Crypto drew attention to an intriguing pattern in Bitcoin’s price trend, reminiscent of fluctuations witnessed in 2012 around the first halving event. He further flagged the potential impact of Bitcoin ETFs’ introduction, which could act as a catalyst for considerable price escalations.

#Bitcoin 2012 pre and post halving PA forming. With 272 days left before 2024, #bitcoin will make a new yearly high before.

Fundamentally, with the approval of ETF there will be massive upside moves

Why sell cheap to institutions? pic.twitter.com/EhaZcVaJUl

— Mikybull 🐂Crypto (@MikybullCrypto) July 22, 2023

The comparisons between Bitcoin’s current price chart and the 2012 chart – in terms of peaks and troughs – have sparked speculations. If history repeats itself, Bitcoin’s price might experience a significant upsurge before or shortly after the next halving event in April 2024. Investors, as of now, are maintaining a neutral stance, indicated by the Fear & Greed Index standing at a balanced 55 out of 100.

Key Levels to Watch
The critical resistance lies close to the $30,000 mark. A successful break above $30,400 could propel Bitcoin towards the $30,800 level, with potential gains testing the $31,200 resistance zone.

Conversely, a failure to breach the $30,000 resistance could induce a continuation of the downward trend, with immediate support projected around the $29,600 level, followed by a key support point at $29,500. If this level is broken, we may see a considerable decline towards the $29,200 support zone.

Expect the Unexpected
Bitcoin’s narrow trading range suggests an impending end, potentially triggering a volatile price move. As it stands, the future direction of the breakout is uncertain, keeping traders on their toes. While the near-term may seem lackluster, periods of limited range typically precede volatility surges. Furthermore, the long wick on the July 20 candlestick indicates a sell-off at higher levels, suggesting that the bears might attempt to reinforce their position by drawing the price below the pivotal $29,500 support.

Disclaimer: The information provided in this article does not constitute financial or investment advice and should not be used as a basis for making investment decisions. It is always recommended to do your own research and consult with a professional financial advisor before making any investment decisions.