After weekend trading had produced a short wick below $18,800, Bitcoin (BTC), slipped into the weekly close July 3.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Volatility due to Bollinger Bands
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD as $19,000 remained constant for the third consecutive day.
Although the pair was showing less volatility over the weekend, it was still on track to close the week below its previous halving cycle’s all time high of December 2020.
Bulls were saved from closing below $20,000.
The Wall Street trading session the week after was characterized by a lackluster momentum. However, traders weren’t convinced about the possibility of a significant relief rebound.
“Looking for a push to the lower support zone of $18,000 while we’re below $19,300. Crypto Tony, a popular Twitter account, wrote an update for followers that included a quick scalp and tight invalidation.
“I don’t trust this move, it’s ‘weekend p,'” Ninja, another account owner, said in part. “If bulls can’t push to $19.7k I don’t believe the dump is over.”
Commentators were keen to see if there was any incoming volatility as the weekly close approached. Matthew Hyland, a popular analyst, noted that the Bollinger Bands indicator indicated that prices would become more unpredictable.
#Bitcoin Bollinger Bands tightening on the daily time frame as displayed on the width indicator: pic.twitter.com/c0bqmMfdSi
— Matthew Hyland (@MatthewHyland_ July 3, 2022
BTC/USD traded close to the bottom Bollinger Band on daily timeframes. This could indicate a drop below, similar to what occurred in May.
Bollinger bands for BTC/USD 1-day candle charts (Bitstamp). Source: TradingView
The March 2020 peak for underwater addresses is exceeded
New data showed that the average hodler was suffering from the worst monthly losses since 2011.
Related: Bitcoin indicator that predicts all bottoms predicts $15.6K BTC floor
Glassnode, an on-chain monitoring company, reported that the weekly average number of unique BTC addresses at loss has reached 18.8 million.
Cointelegraph reported that 60% of the supply was required to realize unrealized losses in capitulation events.
Bitcoin addresses in loss chart. Source: Glassnode
As June ended, analytics account On-Chain College summarised: “Almost $40 billion in Bitcoin Net Realized Losts since May 1st.”
“Some people have left, while others have stayed. One thing is certain: if you have been in this industry for more than a year, and you are still here, then you have experienced a lot volatility. You should do your research before making any investment or trading decision.
Eileen Wilson –Technology and Energy
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