Bitcoin (BTC) struggled to break past the $31,000 mark on July 3, leading to a tight range and uncertainty in the market. The weekly close did little to boost the price performance of BTC, with only minor attempts to breach the resistance level. While some market participants remained optimistic, hoping for a breakthrough, others saw the potential for downward movement.
According to trading team Stockmoney Lizards, the more frequently a resistance line is tested, the weaker it becomes. They argued that eventually, all the sell orders at $31k would be filled. To support their claim, they shared a chart comparing BTC’s price action in 2023 with its behavior before the previous all-time highs in December 2017.
Trader and analyst Rekt Capital also suggested that the overall crypto market capitalization was on the verge of a breakout. He believed that if the total crypto market cap could break out of its black resistance level, it could see gains of up to 10% to 23% over time. This indicated that there was potential for a bullish trend in the crypto market.
On the other hand, trader Crypto Tony predicted a downward movement for BTC, with a target of $28,000. He emphasized that unless the $31,000 resistance zone was broken, he expected a drawdown to reload the option from the bears. However, he preferred to see the price pump higher during that week.
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Consensus among market watchers suggested that BTC/USD was likely to reach a top point, possibly in the mid-$30,000 range, after a final leg higher. This prediction aligned with the belief that BTC was struggling to overcome resistance and could experience a correction.
The June monthly close had significant implications for BTC on a monthly timeframe. For the first time since the 2021 all-time highs, BTC/USD had closed above an adjusted volume-weighted average price (AVWAP). Technical analyst Michael Nauss noted that this indicated a resurgence in BTC’s price action, not seen in two years. This development was seen as a positive sign for BTC’s future performance.
Caleb Franzen, CEO of Cubic Analytics, highlighted the importance of a longer time perspective. He pointed out that when the BlackRock ETF application was announced, BTC’s price rose from $26,000 to new yearly highs above $31,000. He questioned why people were concerned when BTC was still trading above $30,000. Franzen believed that higher highs and higher lows were indicative of a positive trend.
It is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and exercise caution when making investment decisions in the cryptocurrency market.
