Bitcoin (BTC) struggled to break through the $31,000 mark as it traded below this level at the July 3 Wall Street open. The cryptocurrency remained in a tight range following the weekly close, with bulls eagerly waiting for a catalyst to drive the price higher. Despite modest attempts to breach the resistance levels, Bitcoin’s price performance remained mostly sideways at the start of the new week. Market participants who were more optimistic hoped that the repeated testing of a resistance line would eventually weaken it, allowing Bitcoin to surge past $31,000. A chart comparing Bitcoin’s price action in 2021 with its behavior before the 2017 bull market suggested that a breakout could be on the horizon. However, some traders, like Crypto Tony, anticipated a downward move to $28,000 if the resistance level remained intact. Nevertheless, the consensus among experts was that Bitcoin could soon reach its peak, potentially in the mid-$30,000 range, before facing a correction.
A Significant Milestone for Bitcoin
The June monthly close brought significant developments for Bitcoin, particularly on monthly timeframes. For the first time since the cryptocurrency reached its all-time high in 2021, BTC/USD closed above the adjusted volume-weighted average price (AVWAP). This milestone, as pointed out by technical analyst Michael Nauss, indicated a resurgence that had not been seen in two years. AVWAP takes into account important support and resistance levels based on trader behavior, providing valuable insights into market dynamics. The close above $30,000 signaled a positive trend for Bitcoin, highlighting its potential for further growth. Caleb Franzen, CEO of Cubic Analytics, urged market observers to adopt a long-term perspective and not be swayed by short-term fluctuations. Despite the ongoing frenzy surrounding the first Bitcoin spot price exchange-traded fund (ETF) application by BlackRock, Franzen emphasized the importance of focusing on the higher highs and higher lows that Bitcoin had achieved.
Bitcoin’s price remained stagnant below $31,000, with traders eagerly awaiting a catalyst to break through the resistance level. Optimistic market participants believed that repeated testing of the resistance line would weaken it over time. However, some traders anticipated a downward move to $28,000 if the resistance level held. The June monthly close brought a significant milestone for Bitcoin, as it closed above the AVWAP for the first time since its all-time high in 2021. This development indicated a resurgence in Bitcoin’s price and suggested the potential for further growth. Market observers were encouraged to maintain a long-term perspective and focus on the higher highs and higher lows that Bitcoin had achieved. Despite the current stagnation, the overall sentiment remained positive, with experts anticipating a potential peak in the mid-$30,000 range before a correction.