Bitcoin (BTC) was unable to recoup recent losses until July 2 as traders braced for the stalled price action to continue.
The “accelerating downtrend” is still in effect
Data from Cointelegraph Markets Pro and TradingView tracked weak BTC/USD as it cut back around the $19,000 mark over the weekend.
Wall Street’s trading week ended without surprises, with US stocks virtually flat, providing little boost to cryptocurrency volatility. The US dollar index, or DXY, only after a retest of twenty-year highs ran out of steam to circle 105 points.
Order book data from the world’s largest exchange Binance showed that BTC/USD is caught between buying and selling liquidity near the spot price, ensuring lack of volatility until traders maneuver. or add significantly to the offers or demands.
If the scope is widened, the picture did not look any more rosy for the bulls.
For the popular Altcoin Sherpa trading account, current conditions promise a long stretch of uninspiring Bitcoin performance that could last well into 2022.
“It’s going to take months to sting and build up once the bottom is found,” said to Twitter followers.
“And the bottom might not come for a few months. Dig in for a long bear market I think.”
The sentiment was echoed by trader and analyst Rekt Capital, who argued that Bitcoin had not yet made new macro lows or begun to consolidate.
#BTC may still very well be in the “Downtrend Acceleration” phase of its correction
But this phase will precede the “Multi-Month Consolidation” phase
Which will precede the “New Macro Uptrend” phase$BTC #crypto #bitcoin
— Rekt Capital (@rektcapital) July 1, 2022
“De-lever yourself. Put your Bitcoin in cold storage. Feel good”, added Checkmate, principal on-chain analyst at research firm Glassnode.
Will all-time volume highs echo 2018?
The next week or two could turn out to be the lows of this cycle, meanwhile, giving a degree of hope to those concerned that the bottom is still months away.
In a twitter thread of the day, economist, trader, and entrepreneur Alex Krueger noted that BTC-denominated volume reached all-time highs last month.
“As a general rule of thumb, trading volume is highest when markets capitulate,” he explained.
As a general rule, trading volume is highest when markets capitulate, and such capitulation creates large funds.
This weekly chart includes the aggregate bitcoin volume for most BTC pairs (spot and perpetual across all exchanges).
Volume hit its all time high two weeks ago. pic.twitter.com/6ONLibQiL2
— Alex Krüger (@krugermacro) July 2, 2022
In the 2018 bear market, he added, the all-time high for volume actually came several weeks before the price bottomed, and should it trend this time, July could be the site of the next one.
Previously, Rekt Capital had argued that buying volume had not been strong enough to sustain a further long-term price rally, while highlighting volume moves from 2018.
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