Bitcoin Plumbs New Depths. BTC and SOL Analysis for July 25, 2023
Yesterday, BTC dropped below the $29,000 mark, recording a new monthly low at $28,875. Let’s delve into a detailed analysis of the current market situation for Bitcoin (BTC) and Solana (SOL).
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Bitcoin (BTC)
BTC is currently trading within the support zone of $28,700-$29,200. If there isn't a significant response from buyers in this bracket (ideally coupled with high trading volumes), we might see the correction continue. Should this happen, the subsequent support zone is set between $26,700 and $28,000. A strong buying presence can also be seen further down, at the $26,200 level. The bullish trend is still in play as long as the BTC price holds above $25,000.
The sellers' orders are situated within the resistance zones at $29,500-$29,900 and $30,400. It seems rather unlikely at the moment for Bitcoin to test the $31,600-$32,600 zone and hit a new peak.
BTC chart on the H2 timeframe
Solana (SOL)
After Solana's bold surge on July 13, its local trend has tilted towards the bullish side. The asset is currently trading between a support zone stretching from $20.58 to $22.71 and a resistance level situated at $25.4. For Solana to further its climb, it would need to take another swing at the $27.36-$31.43 zone and reach a fresh annual high.
Solana is still highly tied to Bitcoin's performance, so it's plausible we might see an ongoing correction. On the other hand, buyer orders can be spotted just below the present zone, around $19.3, and within the $17.1-$18.5 range.
SOL chart on the H2 timeframe
Tomorrow's release of the U.S. interest rate decision could be a pivotal moment. It has the potential to define the direction of the cryptocurrency market for the next two months (that is, until the next interest rate announcement at the end of September).
Check out The Coinomist for the latest cryptocurrency rates and chart analysis.
Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the The Coinomist editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K – $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
This analysis was informed by the following educational materials and articles from The Coinomist:
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