Bitcoin prices dipped this Wednesday but was able to recover lost ground and is trading higher. This provides hope that the lower boundary of the consolidation area of the bearish flag would remain intact.
If this is the case, the Bitcoin price prediction target of $35,300 could be in the works. Adding some credence to this outlook is the long-awaited unlocking of shares by the Grayscale Bitcoin Trust (GBTC).
Why would this unlock be bullish for Bitcoin? Amber Group says that investors who bought into Grayscale’s shares in January would have to buy Bitcoin to clear the loans used to finance these purchases. In their language, “in-kind” subscriptions funded by debt ultimately leads to spot buying. Bitcoin watchers are awaiting the 18 July event.
Technical Outlook for BTC/USD
Bitcoin price is testing the lower edge of the flag’s consolidation area. This border has held for several weeks now. We could see a bounce from the current level if it continues to hold, targeting the 35297 price level initially. Above this area, 37455 and 40751 become the following upside targets.
On the flip side, a collapse of the flag’s lower border opens the door towards a slump that targets 27796 initially, before 24055 and 22314 come into the picture as additional targets to the south.