Bitcoin (BTC) struggled to break the $31,000 mark as it continued to hover below that level on July 3 during the Wall Street open. Market participants were eagerly awaiting a catalyst that would provide the much-needed momentum for bulls to take control. The price of BTC remained stagnant, with only modest attempts at breaching the resistance levels. However, optimistic traders believed that with each test of a resistance line, its strength diminishes, potentially leading to a breakthrough.
Popular trader and analyst Rekt Capital suggested that not only Bitcoin but also the overall crypto market capitalization was poised for a breakout. This sentiment further fueled hope among market participants, who eagerly anticipated a rally in the near future. However, there were also those who cautioned against excessive optimism and warned of potential downside risks.
Trader Crypto Tony expressed his belief that Bitcoin could experience a drawdown to $28,000 if the $31,000 resistance zone was not overcome. He emphasized the simplicity of the situation and stated that a breakthrough would be preferable to avoid a descent to lower levels. The persistence of resistance levels concerned some traders, as it suggested a lack of bullish momentum.
Consensus was building around the notion that BTC/USD was nearing its peak, possibly in the mid-$30,000 range, after a final bullish leg. Traders and analysts closely monitored the price action and looked for any signs of exhaustion in the ongoing rally. It was crucial to accurately predict the market’s turning point in order to maximize profits or minimize losses.
The June monthly close brought significant developments for Bitcoin on the longer-term monthly timeframes. Technical analyst Michael Nauss highlighted that BTC/USD had closed above an adjusted volume-weighted average price (AVWAP) for the first time since hitting the all-time highs in 2021. This milestone indicated a resurgence in bullish sentiment and could potentially lead to further upward momentum.
Caleb Franzen, CEO of Cubic Analytics, urged market observers to adopt a longer time perspective. He emphasized that despite the fluctuations and market reactions, Bitcoin’s price remained above $30,000, which was a significant milestone. Franzen referred to the announcement of the BlackRock ETF application, which had sparked a price increase from $26,000 to new year-to-date highs above $31,000. He argued that the current price level should not cause panic among investors who had witnessed even higher volatility in the past.
Bitcoin’s price remained stagnant below $31,000 as bulls searched for a catalyst to ignite a rally. Market participants closely monitored resistance levels and hoped for a breakthrough that would weaken the resistance lines. Traders predicted a potential top-out in the mid-$30,000 range and analyzed technical indicators to pinpoint the market’s turning point. The June monthly close provided optimism as BTC/USD closed above the AVWAP, signaling a resurgence in bullish sentiment. Despite short-term fluctuations, market observers were urged to maintain a longer time perspective and not be swayed by minor price movements.
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