The first week in July saw bitcoin prices rise to the highest levels since mid-June. This was despite U.S. non-farm payrolls exceeding expectations. As we enter the second week of July, there are still questions about whether this momentum will continue, given the uncertainty surrounding the market.
Bitcoin’s Current Market Status
If you look back to June, Bitcoin (BTC) was first trading near the $30,000 threshold. But, exactly four weeks prior, markets experienced a significant drop in prices.
Between June 8th – 18th, BTC/USD went from a peak of $31,600, to a floor of $17,612, coming as inflation in the U.S. continued to rise at historic levels.
In an effort to reduce spending, the Federal Reserve increased rates by up to 75 basis points.
The hike somewhat helped boost market confidence, with traders opting to buy June’s dip, hoWever prices traded at below $21,000 most of the times.
However, following five consecutive days of gains, BTC is trading close to the $21,800 level, which is marginally lower than today’s high, which was nearer to a key resistance point.
Although the earlier breakout was successful, the prices now fall below this threshold. Volatility is also higher and many traders are unsure how the remaining month will turn out.
The stories of bankruptcies and liquidations exceedingly severe, with a reported value in excess of $2.5 million, have put crypto traders at risk.
Market fear continues to grow with the imminent Fed rate rise and increasing exposure by crypto firms to insolvent crypto entities.
Bitcoin’s July Outlook
The resistance level at $22,070 was the false breakout, historically a source of uncertainty.
This led to bulls opting to make profits rather than trying to drive prices higher for the most popular crypto token.
This coincides with relative strength indicator (RSI), which is trading at 48.30.
Bulls may be waiting for momentum indicators to change above this level before they enter with any serious force.
If they do, then they’ll likely take advantage of the last weeks to increase their reach to $30,000 and to recover losses.
Many believe the Fed will increase interest rates once more by 75 basis points. If this happens, along with a slowing of inflation, investors might see current lows to be an opportunity to enter.
Bears, however, will be watching for price weakness, which has been trading below this ceiling over the last three months. They are also looking to get back under $19,000, this month.
What do you think about bitcoin’s price action in recent times and the July outlook for the leading crypto asset? Are you expecting bitcoin to go higher or lower? Please comment below on your views.
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