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On July 9, Bitcoin and the broader cryptocurrency market experienced a moderate rally of relief that recovered some of the losses seen on Thursday, but a handful of analysts continue to warn that BTC could still fall into the range of $ 24,000 to $ 29,000 in the short term.
Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin was bid higher during the morning trading hours on Friday and managed to climb back above $ 34,100.
Sentiment among traders rose slightly after the price of Bitcoin reversed course and fell back to $ 34,000, but the price still remains trapped between key resistance and support levels and lack of volume. purchase is still a valid concern.
Tempting Beef, a pseudonymous crypto trader on Twitter, also pointed out that the total crypto market cap and altcoin market cap remain in a precarious position.
#Crypto Total market cap and altcoin market cap fail to reverse their key pivots and form lower highs. Me sad.
Unless we put it together, I would expect us to just play in this lineup, maybe with strengths like $ AXS. It could be a boring summer. pic.twitter.com/Ab4eVSCbdo
– Tempting Beef (@tempting_beef) July 8, 2021
Élie Le Rest, partner of digital asset management company ExoAlpha, also pointed out that in addition to the “non-directional trend” of BTC, the market “is also experiencing a decrease in the volume of transactions” which has led to ” no more wild reversals within the range, hurting directional traders.
The Rest said:
“Within that range, we are seeing pumps and dumps with prices slowly rising before quickly slammed, typical of markets with low liquidity.”
Due to market volatility, Le Rest sees market players sitting on the sidelines waiting “for the Grayscale Trust to stop offloading their Bitcoins and the Chinese regulatory crackdown to subside.”
The Rest also pointed to the scrutiny that financial regulators around the world are giving Binance, as “a significant problem that reduces the ability of the market to raise the capital inflows needed to exceed $ 40,000.”
According to Le Reste:
“Despite these elements already assessed by the market, we continue to see strong adoption of Bitcoin by traditional asset managers looking for a good entry point to position for the next step.”
Signs of support over $ 30,000
While it is true that the price of BTC fell below the weekly support level of nearly $ 34,500, pseudonymous Twitter analyst Rekt Capital was quick to point out that the price found support at a low. another support level established near $ 32,200 resulting in “no major trend changes.”
Related: Bitcoin is a miracle and better than gold, says Wozniak, Apple co-founder
A possible bullish indicator highlighted by some analysts is the Bitcoin ‘net entity growth’ metric, which has reached new highs in recent weeks as the price of BTC languished below $ 40,000.
In times like these, when uncertainty reigns, the simple dollar cost averaging strategy is a strategy that even the most experienced traders turn to in order to reduce stress and refocus on the outlook for trading. long term price.
If the price of Bitcoin drops, I will buy more.
If the price of Bitcoin increases, I will also buy more.
That’s the beauty of the average dollar cost.
– The wolf of all the streets (@scottmelker) July 8, 2021
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.
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