Bitcoin Outlook In July Or Not?

During the first week of July, the Bitcoin price surged to its highest level since mid-June, when US Nonfarm Payrolls excelled above expectations. However, as we head into the remaining weeks of the month, can this momentum be maintained amid further volatility in the market?

Bitcoin’s current market status

BTC started June trading around the $30,000 mark. However, exactly 4 weeks ago, the price dropped significantly and so far has not recovered from this drop.

Between June 8 and 18, Bitcoin slid from a high of $31,600 to a floor of $17,612, as inflation in the United States continued to rise at historic levels.

The situation forced the US Federal Reserve (Fed) to once again raise interest rates by 75 basis points in the hope of cutting spending.

The rising price helped lift market confidence somewhat, and traders opted to buy the dip in June. For the most part, however, BTC is still trading below $21,000 to date. After 5 consecutive days of gains in July, Bitcoin is currently trading close to $21,600, slightly below today’s high, close to a key resistance point.

Despite the previous breakout, the price is currently below this barrier, with volatility once again higher, leaving many traders uncertain about how the rest of the month will play out.

In addition, stories of serious multi-million dollar liquidation, defaults, and alleged bankruptcies have kept traders on edge. The upcoming Fed rate hike and more crypto companies losing money due to exposure to insolvent entities continue to add fear to the market sentiment.

Bitcoin’s July outlook

A false breakout has occurred at the $22,070 resistance level, which used to be a point of uncertainty. As a result, bulls chose to take profits, rather than trying to push the price of Bitcoin higher.

Looking at the chart below, this coincides with the relative strength index (RSI) trading close to the resistance at 48.3.

It is likely that the bulls will wait for the momentum indicator to break through this point before turning back on any real momentum. If successful, they will likely use the remaining weeks of the month to move closer to the $30,000 region, recovering some of the losses of the past few weeks.

Many predict the Fed will once again raise interest rates by 75 basis points. If this happens, plus inflation starts to slow, investors might see the current low as an opportunity to get in.

However, with price strength mostly trading below the current ceiling for the past 3 months, bears will also be waiting for an opportunity to enter the race, targeting a return below $19,000 this month.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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