Bitcoin (BTC) teased more rangebound moves on July 7 as traders recovered from a day of volatility.
BTC price gets a bid after volatile 24 hours
Bitcoin bulls had hoped that new yearly highs the day prior would allow BTC/USD to exit its months-long trading range for good, but ended up disappointed.
The largest cryptocurrency saw rejection at $31,500, falling below the $30,000 mark just hours later to challenge the lower part of the range.
Looking ahead, traders thus reverted to risk-off mode in the short term.
— Crypto Tony (@CryptoTony__) July 7, 2023
Popular trader Jelle noted that relative strength index (RSI) values had come full circle on 4-hour timeframes, effectively canceling out the previous hype.
“Bitcoin – 4h RSI almost fully reset, as price made its way towards the local range lows. I’m not expecting much volatility over the weekend, likely just more rangebound PA,” he told Twitter followers.
Fellow trader Skew nonetheless noted what appeared to be solid buyer interest at the overnight lows near $29,700.
$BTC Binance Spot
Quite a lot of BTC being bought here actually & decent liquidity definition here
Supply $31.3K – $32K
Demand $29.5K – $28K pic.twitter.com/IrAObilBzP
— Skew Δ (@52kskew) July 7, 2023
He added that BTC price trajectory had suffered at the hands of “aggressive” short selling after $31,500 had been hit.
Bitcoin “undoubtedly bullish”
Longer-term perspectives likewise continued the overall bullish narrative, with short-term retracements and sideways movement below resistance a necessary hurdle to overcome.
Among them was that of TraderKoz, who like various other market participants dispelled fears over a deeper comedown challenging Bitcoin’s uptrend.
“With a lot of people talking about shorter-term pullbacks, it’s important to keep the bigger picture in mind and not lose focus,” he argued on July 6.
“Whether we pullback to 28k, 29k, or wherever else, this weekly chart is undoubtedly bullish (in my opinion). And I will be looking to bid dips.”
Prior analysis acknowledged that such a pullback zone may be too “ideal,” implying that those waiting for it may thus get left behind.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.