Bitcoin (BTC) said “no” to volatility for a third day on July 7 as Wall Street trading began with little change in mood.
Next move “probably sets direction going forward”
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as it fluctuated just north of $20,000, retaining a characteristic pattern for the week so far.
The pair remained within a defined range overnight, leading analysts to assume that a breakout to the upside or downside was next as a short-term outlook.
“Bitcoin strong consolidation at $20,000, this can’t go on forever, triangle set to break to the upside or downside. But there is the bullish divergence of the RSI”Venturefounder, a contributor to on-chain analytics platform CryptoQuant, told Twitter followers on July 6.
“BTC above $21,700 is a higher high, below $18,800 is a lower low, the next move is probably the direction to go.”
Bullish signals on the Bitcoin Relative Strength Index (RSI), like the ones Venturefounder mentions, often precede the BTC price trail, making the current RSI chart a key benchmark on low time frames.
Confirming the likelihood of volatility returning, meanwhile, the Bollinger Bands on the daily chart remained narrow, a classic prelude to a trend taking shape.
As for which direction that trend could take, all bets were kept off on the day as caution summed up the sentiment.
Ninja cryptocurrency trader commented: “I’m still not convinced with this kind of price action.”
“Below $20,600 is the spread in my opinion, and any buying will fizzle out…the nuke is not over.”
ninja too I observe that short interest was rising on the Bybit exchange platform on the day, advising a hands-off approach until those positions are unwound.
The calm before the CPI storm
In macroeconomic markets, the US opened with modest gains, with the S&P 500 and the Nasdaq Composite Index rising 1% and 1.3%, respectively, in the first 30 minutes.
One week after the publication of the consumer price index (CPI) data for May, Markets remained turbulent-free on signs of inflation, which in turn prevented headwinds from affecting crypto asset performance.
With opinions still mixed on how America’s economic policy will change through 2023, Crypto trader Tony acknowledged that a true return to form for Bitcoin and altcoins may take longer than many realize.
“Personally, in my worst case update, I don’t think we’ll see the start of the next push until later next year and a new bull run peak until 2024 – 2025”, tweeted that day.
“I’m already positioned at 22-24k and will add if we go down to 17-15k.”
Meanwhile, Cointelegraph earlier reported on a trader’s theory that Bitcoin will confirm where the latest macro bottom is by July 15.
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