Bitcoin Remains Strong at $30,626 as Traders Look to the Future
Bitcoin (BTC) has started the first week of July on a positive note, with the company holding $30,000 support. Despite rising 20% in Q2, BTC’s price action remains resilient, with the weekly and monthly timeframes showing strength. Traders and analysts are now looking to see what lies ahead for the world’s leading cryptocurrency.
The TradFi (Traditional Finance) market is expected to be relatively quiet this week, as Wall Street gears up for the Independence Day holiday and minimal macroeconomic data is anticipated from the United States. Bitcoin will need volatility triggers from other sources if the bulls are to break past longstanding resistance levels.
Views among market participants are mixed. Some believe that BTC could easily surpass $32,000 and even higher, while others see this month as the peak of Bitcoin’s 2023 recovery. Factors that could affect BTC’s price performance in the coming days and weeks are being watched closely.
The weekly close for Bitcoin was favorable for buyers, with volatility moderate and BTC/USD continuing its upward trajectory. The new week saw BTC touch $30,850 on Bitstamp, close to the $31,000 mark and the yearly high. However, there is a lack of catalysts for a trend change, leaving optimistic traders waiting for confirmation of further bullish continuation.
Leading trader Jelle maintains a bullish stance, citing a favorable market structure and reclaiming the 200-week exponential moving average (EMA). He predicts a bull market will kick in once the $32,000 resistance area is broken. Other traders, such as Crypto Ed, expect a push towards $36,000 and even $40,000 but anticipate a retracement to $28,000 as a potential buying opportunity on the downside.
Bitcoin whales also play a role in maintaining BTC’s price range, according to on-chain resource monitoring Materials Indicator. These whales have been distributing and buying dips in the $30,000 range, helping to keep Bitcoin within its current price range.
However, not all traders share the bullish sentiment. CryptoBullet predicts an end to the bull run in July, with a local peak of around $36,000 and a subsequent dip, potentially even dislodging the major moving averages.
While the macroeconomic climate is expected to be subdued this week, attention is on the US banking sector. Regional banking continues to face challenges, even Bank of America (BoA) faces losses due to the purchase of bonds. The situation at Germany’s central bank has also raised concerns about the stability of fiat currencies and central banks.
Bitcoin miners have highlighted the importance of BTC surpassing and maintaining the $30,000 level, as they have increased the number of coins being sent to exchanges. However, overall miner balances have maintained a slow upward trend since the start of 2023, indicating that miners are not facing any significant hardship.
On the bright side, persistent Bitcoin peddlers show strong convictions, refusing to sell despite fluctuating prices. The amount of BTC deemed “illiquid” has reached levels not seen since the 2022 bear market, indicating that sellers are holding their ground.
Overall sentiment in the crypto market remains indecisive, as reflected in the Crypto Fear & Greed Index. It fluctuates between “neutral” and “greed” depending on Bitcoin’s performance around the $30,000 mark. Ethereum (ETH) is also facing a similar challenge in reclaiming the $2,000 level.
As the crypto market navigates through various factors and sentiments, traders and investors will be closely monitoring BTC price movements and key resistance levels in the coming weeks.
