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Uncertainty Looms Over Bitcoin's Performance
As Wall Street opened on July 3rd, Bitcoin was holding just under $31,000, with market bulls anxiously awaiting a trigger event. The BTC price activity continued to confound everyone, all while Bitcoin nonchalantly attained a notable milestone on monthly timeframes.
Bitcoin Price: Standing at the $30,000 Crossroads
BTC/USD was trading within a narrow range as the new week began, according to data from Cointelegraph Markets Pro and TradingView. The weekly close followed a pattern of restrained sideways movement, interrupted only by slight efforts to breach the $31,000 barrier.
Market optimists are banking on the falling of nearby resistance levels, not just for Bitcoin, but across the board. The trading group Stockmoney Lizards posited that "The more often a resistance line is tested, the weaker it becomes," adding that "A time will come when ALL $31k sell orders are exhausted."
The group's posted chart on Twitter drew parallels between BTC's current price behavior and its pre-bull market patterns in 2016, leading up to the all-time highs in December 2017.
Market Speculations: Breakout or Downturn?
Adding to this, Rekt Capital, a popular trader and analyst, suggested that the overall crypto market cap was on the cusp of a breakout. However, not all share this optimistic outlook. Some, like trader Crypto Tony, warn of potential downside in the face of persistent resistance, reiterating forecasts of a dip to $28,000.
In a recent tweet, he shared, "This week's Bitcoin situation is as straightforward as it gets. We're facing the $31,000 resistance zone, so unless we overcome it, I expect us to retreat to $28,000 for a bearish reload option. Though, I'd much rather we simply rally this week."
Consensus appears to be building around a potential BTC/USD peak, possibly in the mid-$30,000 range, following one last surge.
Mirroring 2021's Bitcoin Performance?
Simultaneously, the closing of June marked a pivotal shift for Bitcoin on monthly timeframes. For the first time since hitting 2021's all-time highs, BTC/USD closed above an adjusted volume-weighted average price (AVWAP), according to technical analyst Michael Nauss.
AVWAP examines critical support and resistance levels based on trader activity, and closing above $30,000 represented a revival not witnessed in two years. Caleb Franzen, CEO of Cubic Analytics, retweeted Nauss' observation, advising market spectators to broaden their time perspectives.
He referenced the Bitcoin spot price exchange-traded fund (ETF) application in the U.S. and noted, "When the BlackRock ETF application was announced, the Bitcoin price was roughly $26k, and it rose to new YTD highs above $31k. We're still trading above $30k, and people are panicking? Not me. We're seeing higher highs and higher lows."
