On July 9, Bitcoin and the broader cryptocurrency market saw a moderate recovery rally that helped offset some of the losses posted on Thursday, but a handful of analysts continue to warn that BTC could still fall to the $ 24,000-29,000 range in the short term.
Data from Cointelegraph Markets Pro and TradingView show that Bitcoin’s price was bid higher during Friday morning trading hours and managed to climb back above $ 34,100.
Sentiment among traders received a slight boost after Bitcoin price reversed and rebounded back to $ 34,000, but the price still remains trapped between major resistance and support levels and the lack of buying volume is still a legitimate concern .
Tempting Beef, a pseudonymous trader on crypto twitter, also pointed out that the overall crypto market cap and altcoin market cap are still in a precarious position.
# Crypto total market cap and altcoin market cap both fail to flip their key pivots, making lower highs. I’m sad.
If we don’t pull ourselves together, I expect we will just play in this area, maybe with some great players like $ AXS. Could be a boring summer. pic.twitter.com/Ab4eVSCbdo
– Tempting Beef (@tempting_beef) July 8, 2021
Élie Le Rest, partner at ExoAlpha, a digital wealth management company, also pointed out that in addition to the “undirected trend” in BTC, the market is also witnessing “a decline in trading volume” that has led to “more wilder reversals within the” range, which harms directional traders. ”
Le rest said:
“Within this range, we see pumps and dumps in which prices slowly rise before they are quickly pushed down, which is typical for markets with little liquidity.”
Given the market volatility, Le Rest sees market participants staying on the sidelines while waiting for “the Grayscale Trust to stop dumping its bitcoins and for the cooling off of Chinese regulators”.
Le Rest also pointed to Binance’s scrutiny by financial regulators around the world as “a significant problem reducing the market’s capacity to achieve the inflow of capital required to exceed the $ 40,000 mark “.
According to Le Rest:
“Despite these elements already priced in by the market, we continue to experience strong acceptance of Bitcoin by traditional asset managers who are looking for a good entry point for the next stage.”
Signs of support over $ 30,000
While it’s true that BTC price fell below the weekly support level near $ 34,500, pseudonymous crypto Twitter analyst Rekt Capital was quick to point out that the price is at another established support level nearby found support of $ 32,200, resulting in “no major trend changes”.
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One possible bullish indicator highlighted by some analysts is the Bitcoin “Entities Net Growth” metric, which has climbed to new highs in the past few weeks when the price of BTC was below $ 40,000.
In times of uncertainty like these, even the most seasoned traders turn to the simple dollar-cost averaging strategy to reduce stress and focus on the long-term price outlook.
If the bitcoin price goes down, I’ll buy more.
If the bitcoin price goes up, I’ll buy more too.
That is the beauty of dollar cost averaging.
– The wolf of all streets (@scottmelker) July 8, 2021
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.