In the first week of July, the bitcoin price rose to its highest level since mid-June on the back of much stronger than expected U.S. nonfarm payrolls. However, heading into the remaining weeks of the month, questions still remain as to whether this momentum can be maintained despite the current market uncertainty.
Current market conditions for Bitcoin
Looking back at June,Bitcoin (BTC)began trading in the $30,000 range, but just four weeks ago today, prices fell significantly and the market has yet to recover from this decline.
Between June 8 and 18,BTC/USD fell from a peak of $31,600 to a bottom of $17,612 as US inflation continued to rise at historic levels.
This prompted the Federal Reserve to once again raise interest rates, this time by as much as 75 basis points in hopes of curbing spending.
However, even under these circumstances, it is important to “stand firm in one’s convictions.” {
But for the most part, prices are trading at $21,000 or less.
But after five straight days of gains,BTCis trading near the $21,800 level, slightly lower than today’s high, which was near a key resistance point.
Despite the breakout earlier, prices are below this hurdle, volatility is high again, and many traders remain uncertain about what the rest of the month will look like.
Talk of serious multi-million dollar liquidations, suspected insolvencies, and bankruptcies are making crypto traders nervous.
Upcoming Fed rate hikes and many crypto companies experiencing negative exposure to bankrupt crypto entities continue to scare market sentiment.
July Outlook for Bitcoin
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This false breakout occurred at the $22,070 resistance level, a historically uncertain point.
As a result, the bulls opted to secure profits rather than attempt to push the price of key crypto tokens higher.
Looking at the chart below, this coincides with the Relative Strength Index (RSI) indicator trading near its own resistance level at 48.30.
Bulls are likely to wait for the momentum indicator to pass this point before re-entering in earnest.
If so, they will likely use the remaining weeks of the month to recover some of the losses of the past few weeks and approach $30,000 territory.
If this is the case, investors may see the current low as an entry opportunity.
But since price strength has traded mostly below this ceiling for the past three months, the bears will also be waiting to enter the fray, with the goal of getting back below $19,000 this month.
What are your thoughts on the recent price action in bitcoin and the July outlook for the major crypto assets? Do you expect bitcoin to rise higher or fall lower from here? Let us know what you think on this subject in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
