Bitcoin's whipsaw volatility (BTC), which has been evident throughout June, left traders confused and looking for the most recent technical indicator or major announcement that could give some clue as to the direction the price might move.
The month of June is coming to an end and traders are now focusing BTC's BTC on the monthly close in order to determine whether the forward outlook favors bulls or bears.
Bitcoin's price is still 47% below its record high of $64,873, and analysts are divided on whether the bullish momentum will rebound in the near term. As the market heads into July, here are three perspectives that analysts consider.
Bitcoin must have the $34,500 support
Surveys of crypto Twitter users have shown that 34,000 is a critical price level that chart watchers need to defend in order to support the bull case for Bitcoin.
Rekt Capital, a Twitter pseudonymous trader, believes that the market would be close to this level. This is similar to the BItcoin price patterns seen during the bull market of 2013. There was a mid-cycle correction, before the price reached a new all time high later in the year.
This bullish view suggests that Bitcoin's price will continue its upward trend which began in late 2020. It could theoretically reach a new all time high in 2021 or 2022, when it is expected to exceed $100,000. According to the Bitcoin stock to-flow model.
Despite widespread acceptance and faith of the S2F model model, Bitcoin's recent price action caused even Plan B, who created the model, to feel "uneasy about" the recent dip in BTC to the lower bound.
Signs of a bearish collapse
Bull market supporters look for signs to support a move higher. However, John Wick noticed the price action of June 30, which caught the attention of another Twitter analyst. According to the analyst, the bearish topping pattern can be seen in the latest BTC chart.
Wick says that Bitcoin needs support at $34,000 to continue to trade. Otherwise, the market may be in for an extended period of range-bound, sideways trading, rather than a new move higher.
The following tweet by Nunya Bizniz, a Twitter personality, highlighted bearish sentiments. She points out that BTC must close above $37,000.00 to avoid three consecutive months of downtime. This historically indicates more downside.
Rising sentiment: Signs
There are many indicators that suggest rising sentiment amid all the noise.
Twitter user 'Bitcoin Archive’ pointed out the Grayscale Bitcoin premium nearing zero and renewed buying activity through the Purpose Bitcoin Exchange Fund as evidence of rising sentiment.