Bitcoin oscillates back and forth between two weekly supports, typical of illiquid markets
Bitcoin bulls have pushed the price back above $ 34,000, but analysts are warning that a variety of bearish factors pose a short-term threat.
This morning (July 10th), Bitcoin and the wider crypto market saw a moderate rally that helped offset some of the losses from Thursday (July 7th), but some traders continue to warn that it may still hit the 24,000-29,000 mark Falling US dollars could be enough in the short term.
Data from TradingView shows that Bitcoin price has risen significantly and has tried to climb back above $ 34,100.
BTC / USDT. Daily chart | Source: TradingView
Sentiment among traders is more positive after Bitcoin price reversed and bounced back towards $ 34,000, but price remains stuck between key resistance and support levels and the lack of buying volume remains a major problem.
Trader Tempting Beef also pointed out that the overall crypto market cap and altcoin market cap are still in a precarious position.
#Crypto Total market cap and altcoin market cap both failed to flip their key pivot points and make lower highs. I’m sad. ????
– Tempting beef (@tempting_beef) July 8, 2021
We just stay calm and just move in that area. It can be a boring summer. “
Élie Le Rest, partner at the digital asset management company ExoAlpha, also pointed out that in addition to the “unknown trend” in Bitcoin, the market is also seeing a “decline in trading volume”, which harms directional traders
“Within this range, we see pumps and dumps, with the price rising slowly before falling quickly, which is typical for markets with little liquidity.”
Directional trading refers to strategies based on an investor’s view of the future direction of the market.
Due to market volatility, Le Rest found market participants standing on the sidelines waiting for “grayscale trusts to stop dumping their bitcoins and China’s regulatory crackdown to cool off.”
Le Rest also pointed out that financial regulators around the world are closely monitoring the Binance exchange “which has reduced its ability to attract the capital required to exceed $ 40,000”.
“Although these factors have been priced in by the market, we continue to see strong adoption of Bitcoin by traditional money managers looking for a good entry point for the next phase. Next paragraph. “
Signs of support over $ 30,000 While it’s true that Bitcoin price fell below the weekly support of $ 34,500, analyst Rekt Capital was quick to point out that Bitcoin has found another strong support near $ 32,200, leading to ” nothing ”led.
#BTCrecently lost its ~ $ 34,500 weekly support only to drop to the bottom of the instant weekly support No major trend changes$ BTC for the time being only plays with these two weekly supports #Crypto
– Rekt Capital (@rektcapital)
July 8, 2021
“Bitcoin recently lost its weekly support of around $ 34,500 and immediately fell to the weekly support below.
Not a big turnaround
One bullish indicator that could be highlighted by some analysts is that the “Unit Net Growth” metric has risen to new highs in the past few weeks as Bitcoin price fell below $ 40,000. Analysts say Bitcoin’s variable price action is typical of a low liquidity market Bitcoin company net growth
| Source: Glassnode In times of uncertainty like this, a price averaging (DCA) strategy is one
that even the most seasoned traders use to relieve stress and focus on the long-term price outlook.
“If the price of Bitcoin goes down, I’ll buy more.
If the Bitcoin price goes up, I’ll buy more too. That’s the beauty of the averaging strategy. ”
This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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