Bitcoin (BTC), which was trading on Wall Street with little mood change, said “no to volatility” for the third day of July 7.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Next move “likely sets direction moving forward”
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD’s fluctuation just north of $20,000 but retained a characteristic pattern of the week thus far.
Analysts believed that the pair would soon break up or fall, as they remained within a certain range overnight.
“Bitcoin strong consolidation @ $20k, this cannot go on forever, triangle primed for break to upside oder downside. Venturefounder, a contributor of on-chain analytics platform CryptoQuant on July 6, told his followers that RSI bullish divergence tho.
BTC moving above $21,700 is a higher high; going below $18,800 is a lower low. The next move will likely set the direction.
Venturefounder refers to bullish signals on Bitcoin’s relative strengths index (RSI) as preceding BTC price followthrough. Venturefounder makes the current RSI chart a crucial reference point for low timeframes.
Bollinger Bands on daily charts remained narrow, which confirms the possibility of volatility returning. This is a classic prelude for a trend developing.
BTC/USD 1-day candle charts (Bitstamp), with RSI and Bollinger bands. Source: TradingView
All bets were off regarding the direction this trend might take. However, caution summarized sentiment.
Crypto trader Ninja said, “I am still not convinced by this type of price movement.”
“Below $20.6k distribution is imo, and any pumps will be faded… The nuke isn’t over.”
Ninja also noted that Bybit was experiencing short interest on the day. She advised a non-committal approach until these positions are unwound.
Calm before the CPI hurricane
The U.S. opened with modest gains on macro markets. The S&P 500 Index and the Nasdaq Composite Index were up 1% and 1.3% respectively within the first 30 minute.
Related: Bitcoin bulls might have to wait until 2024 before the next stage of Bitcoin price “rocket” is reached
Markets remained calm a week before May’s Consumer Price Index data release. This was due to the fact that markets were not turbulenced by inflation signals.
Crypto Tony, a trader and investor, acknowledged that it may take longer for Bitcoin and other altcoins to return to their former form than most realize.
He tweeted that he believed that he did not see the beginning of the next impulse in his worst-case scenario update. “Personally, I do not believe we will see the start or the next surge until later next year. A new bull run peak is unlikely until 2024-2025.”
“I am already at 22-24k, and will increase if we drop down to 17–15k.”
Cointelegraph had reported earlier on a trader’s theory about Bitcoin confirming the location of the last macro bottom by July 15.
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