Bitcoin has experienced a roller coaster market through the course of 2017, and for a while, it appeared that this trend would continue in 2018. (It did not.) However, as the year came to a close, Bitcoin markets generally became more stable and less volatile, and traders were hopeful that price stabilization would bring in more investment capital and encourage more adoption.
Bitcoin has been on a roller coaster ride lately, and it’s not showing any signs of slowing down. The recent price swings we’ve seen in Bitcoin have been driven by a combination of factors. The sudden price increases we’ve seen in recent weeks have corresponded with news of high-profile deals going through and the announcement of a Bitcoin futures contract on the CBOE.The 9th. July, bitcoin and the broader crypto-currency market posted a moderate rally that helped recoup some of Thursday’s losses, but several analysts continue to warn that BTC could fall into the $24,000 to $29,000 range in the near term.
Data from Cointelegraph Markets Pro and TradingView shows that the price of bitcoin was higher during trading hours Friday morning, rising back above $34,100.
Daily chart BTC/USDT. Source: TradingView
Sentiment among traders improved slightly after bitcoin changed course and returned to the $34,000 level, but the price remains stuck between key resistance and support levels, and the lack of buying volume is still a legitimate concern.
Tempting Beef, a pseudonymous trader on the cryptocurrency Twitter, also noted that the overall cryptocurrency and altcoin markets remain in a volatile position.
The market totals #cryptocurrency and altcoin failed to reverse their key points and formed lower highs. I’m sad.
If we don’t recover, I expect to continue playing in this range, perhaps with a few excellent positions like $AXS. Could be a boring summer pic.twitter.com/Ab4eVSCbdo
– Tempting Beef (@tempting_beef) July 8, 2023
Ellie Le Rest, a partner at digital asset management firm ExoAlpha, also noted that along with BTC’s unfocused trend, trading volume in the market has also declined, leading to wilder reversals within the spread, hurting directional traders.
The rest said:
Within this range, we see pumps and dumps where prices rise slowly and then fall quickly, which is typical of markets with low liquidity.
Due to the volatility of the market, The Rest believes that market participants will remain on the sidelines until Grayscale Trust stops withdrawing bitcoins and Chinese regulations calm down.
Rest also pointed out that financial regulators around the world are watching Binance closely, which is a major issue limiting the market’s ability to receive the capital inflows needed to break through the $40,000 barrier.
According to Le Rest:
While these things are already appreciated by the market, we are still seeing an active adoption of bitcoin by traditional asset managers looking for a good entry point to position themselves for the next rise.
Sign of support over $30,000
While it is true that the BTC price fell below the weekly support level around $34,500, pseudo-crypto-currency analyst Rekt Capital was quick to point out that the price found support at another established support level around $32,200, which did not result in a major trend change.
Related: Bitcoin is a miracle and worth more than gold, according to Apple co-founder Wozniak.
One possible bullish indicator that some analysts are pointing to is the measure of growth in net issuance of bitcoins, which has reached new highs in recent weeks as the price of BTC dipped below $40,000.
Net growth of bitcoin entities. Source: Glassnode
In times like these, when uncertainty reigns supreme, even the most experienced traders resort to a simple dollar stop-loss strategy to reduce stress and focus on the long-term price outlook.
When the price of bitcoin drops, I buy more.
When the price of bitcoin goes up, I buy more.
That’s the beauty of the buying average.
– The Wolf of All Ways (@scottmelker) July 8, 2023
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and every transaction involves risk. So you need to do your own research before making a decision.
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