Bitcoin (BTC) is meandering relatively listlessly towards the end of the week on July 3 today, with an intermediate low of 18,800 US dollars on the tableau for the weekend.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Bollinger bands suggest new volatility
As the data from Cointelegraph Markets Pro and TradingView show, BTC/USD is holding around the $ 19,000 mark for the third day in a row.
There was hardly any volatility at the weekend, which means that the Bitcoin price is now well on its way to making the first weekly close below a record high from a past price cycle.
Last weekend, BTC was able to climb up late, which literally prevented a close below $ 20,000 at the last second.
After Wall Street had already set a conceivably weak course during the week, Bitcoin also remains uninspired on Saturday and Sunday, which is why traders have little hope of a saving leap this time.
“I expect a downturn to the lower support at $18,000 as long as we remain below $19,300. A short, sharp downturn“, as the trader Crypto Tony sets the probable direction.
“I can’t trust the current price development, because it’s the weekend,” as the trader Ninja cautiously puts it. He adds: “If the bulls can’t lift back to $ 19,700, then it will go down even further.“
So while the experts are eagerly awaiting new volatility at the end of the week, analyst Matthew Hyland points out that the much-quoted Bollinger bands are contracting more and more closely, which could soon provide a significant directional movement.
#Bitcoin Bollinger Bands tightening on the daily time frame as displayed on the width indicator: pic.twitter.com/c0bqmMfdSi
– Matthew Hyland (@MatthewHyland_) July 3, 2022
In the daily chart, BTC/USD is rather on the lower Bollger band, which suggests that there could be a clear downward kink soon, as was the case back in May.
Bitcoin daily chart (Bitstamp) with Bollinger bands. Source: TradingView
Retail investors need to bleed
In the worst month since 2011, small private investors in particular had to let their blood flow, as new data show. The thread of patience could therefore slowly become scarce, especially among retail investors.
In this context, Glassnode’s data shows that the moving average of Bitcoin wallets, which are now experiencing a loss, reached a new record high of 18.8 million addresses on July 3 today.
As Cointelegraph reports, it has emerged from previous soil formations that almost 60% of the circulating amount must slip into the red area before the low point is reached.
Bitcoin addresses with losses. Source: Glassnode
“Almost $40 billion in realized losses since May 1,” according to On-Chain College analysts. To which they attach:
“Some have jumped off, some are still there, but one thing is clear: if you are still in the market after at least a year, then you have already experienced a lot of volatility.“
