After entering the previous week at levels close to its yearly lows, Bitcoin has decided to make some positive moves in the month of July. Having dropped to $5800 during the last Friday it has experienced a reversal of sorts, going on two small runs which led the price all the way up to $6600. Since that weekly high was reached on June 2nd, BTC went into a sideways pattern before dropping off a bit today. Currently, BTC/USD is traded at $6,570.37 which is a 0.25% drop in the last 24 hours. BTC market cap remains at $112,553,637,870; this allows it to retain the no.1 spot of the coinmarketcap’s list of most valuable cryptocurrencies as it currently has more than 41% of the total market valuation just for itself.
Analysts still show an overall bearish market sentiment, with most seeing the current support zone around $6300 as not very strong. However, there are signs that bears are wearing out and that buyers are picking up solid momentum. A major resistance is detected at $6700 and a break-out from here could bring additional gains that might lead us all the way up to $7000.
The market still seems rather weak. Looking at the volume for the last two pumps, while it did rise just before/during the moves it would quickly fall off just hours after. This suggests that there isn’t much of substance behind these bull runs. Even so, the 0.618 Fibonacci retracement from the bottom – when crossed with the current trend line – suggests that we could be looking at a potential breakout to $7371 by the middle of July.
For now, we stick to our previous slightly bearish predictions. It is highly likely that the current breakout is a temporary bounce that will be followed by more bearish action. It is also likely that we are almost at the bottom of this bear run and that a reversal is happening soon. The previously mentioned target of $7371 will be closely observed by big money players, meaning that a sell-off could happen before/just after we reach it. Traders have also noticed a wedge forming with these two recent price pumps; if the price falls from the current levels we could be seeing a drop into $5500 ranges.
If any strong breakout was to happen, the volume will be the most important element to look out for. Right now, this volume isn’t there; it remains to be seen when and if it will pour back into the market.