Bitcoin (BTC) is also not in the mood for volatility on July 7 today, the third in a row, and even the start of trading on Wall Street cannot let the spark jump.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Is the next directional movement decisive?
As the data from Cointelegraph Markets Pro and TradingView show, the Bitcoin price is still moving relatively listlessly around $ 20,000, which continues this week’s pattern.
At the same time, the price range around BTC / USD is getting narrower and narrower, which suggests to the analysts that there will soon be a significant directional movement, at least in the short term.
“Bitcoin is in strong consolidation at $20,000, but that can’t go on forever. The wedge formation will sooner or later dissolve downwards or upwards. At least the RSI is already showing a positive divergence“, as a crypto expert from the CryptoQuant analysis platform assesses the current situation. To which he appends:
“If BTC climbs above $21,700, we will get a higher high, but below $18,000 we would be at a lower low. The next directional movement could therefore be decisive for the further price development.“
Positive divergences in the Relative Strength Index (RSI) of Bitcoin are often a first sign of an upswing of the market-leading cryptocurrency in the near future, which is why the current situation is now back in the focus of traders.
The so-called Bollinger bands are also contracting further and further around the Bitcoin price in the daily chart, which also indicates that there should be noticeable volatility again in the next few days.
Bitcoin daily chart (Bitstamp) with RSI and Bollinger bands. Source: TradingView
However, the question of the direction in which this movement is taking place remains unclear, because the mood among investors is still wait-and-see.
“I’m still not entirely convinced by this price development,” as crypto trader Ninja writes on behalf of. And further:
“Below $20,600, we are not over the hill yet and every upswing will be sold off again.“
Ninja adds that short positions are again piling up on the Bybit trading platform today, which is why he wants to wait until this threat has resolved.
Calm before the inflation storm?
The American stock market, meanwhile, was able to increase slightly, so the S&P 500 is up 1%, while the Nasdaq Composite was able to gain 1.3%.
A week before the release of the new US inflation figures, the markets are still largely calm, which at least pauses the external pressure on Bitcoin & Co. a little.
With opinions still mixed over how U.S. economic policy will change through 2023, trader Crypto Tony acknowledged that a true return to form for Bitcoin and altcoins may take longer than many realize.
“My personal worst-case scenario would be that we will not see a clear upswing until the end of next year and then start a new record run between 2024 – 2025,” as the expert warns relatively soberly. To which he appends:
“I have already bought between 22,000 – 24,000 US dollars and will add between 15,000 – 17,000 US dollars again.“