In the first week of July, prices of the leading cryptocurrency Bitcoin (BTC) soared to their highest level since mid-June, as US Non-Farm Payrolls greatly exceeded expectations. However, as we enter the remaining weeks of the month, questions still remain whether this momentum will be maintained despite the current uncertainty in the market.
Current market situation of Bitcoin (BTC)
Looking back at June, Bitcoin (BTC) started the month around $30,000, but exactly four weeks ago today, prices dropped significantly and markets still haven’t recovered. As we reported on Kriptokoin.com, between June 8-18, BTC/USD went from a high of $ 31,600 to a low of $ 17,612. In other words, the decline continued as inflation in the USA continued to rise at historical levels. This forced the Federal Reserve to raise rates once again, by as much as 75 basis points in hopes of curbing spending. The increase helped boost market confidence as investors chose to buy the June dip, but for the most part, prices are trading below $21,000.
However, after five consecutive days of gains, BTC is trading near the $21,800 level, which is marginally lower than today’s high, which is closer to a key resistance point. Although there was a breakout earlier, prices are now below this hurdle and volatility has risen once again. Many investors are still undecided on how the rest of the month will turn out. Stories of serious liquidations, alleged bankruptcies, and bankruptcies of millions of dollars are worrying crypto investors. The upcoming Fed rate hike and more crypto companies facing negative exposure to bankrupt crypto assets continue to add fear to market sentiment.
Bitcoin’s July outlook
The breakout came at the $22,070 resistance level, which has historically been a point of uncertainty. As a result of this, the bulls chose to secure profits rather than try to push the prices of the leading cryptocurrency. Looking at the chart below, this coincides with the relative strength index (RSI) indicator trading close to its own resistance level at 48.30.
The bulls are probably waiting for the momentum indicator to pass this point before re-entering the game with any real showdowns. If they do, they will likely use the remaining weeks of the month to get closer to the $30,000 zone, recouping some of the losses over the past few weeks. Many expect the Fed to raise interest rates once again by another 75 basis points. If that happens and plus inflation begins to slow, investors may see current lows as a suitable entry point. However, while price strength has mostly traded below this current ceiling over the past three months, the bears will also be waiting to enter the fray, aiming to return below $19,000 this month.
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