In recent days, Bitcoin has shown notable recovery after a brief drop in prices triggered by activity from dormant wallets, reigniting trader interest in its potential movement.
Technical Support and Resistance Levels
Recently, Bitcoin established a support level at $108,000. With current prices above this mark, traders are increasingly optimistic about the potential for new all-time highs. Analysts like Daan Crypto Trades noted that Bitcoin typically sets a monthly high or low in the first 12 days of the month in over 80% of cases.
Risks of a False Breakdown Ahead
Analyst CrypNuevo warned that Bitcoin may revisit $105,200 due to liquidation dynamics. This level aligns with the 50-day exponential moving average, making it a 'good entry point' if a brief drop occurs. He added, 'The main individual liquidation level is at $105.2k. So it wouldn’t surprise me to see a false move to this zone.'
Optimism After Weekly Close
Despite midweek volatility, Bitcoin ended the week with a record close at $109,240 on Bitstamp. This erased prior losses and added 1.8% to Bitcoin’s price for the first week of July, topping off a 2.8% gain in June. Market observers remain optimistic, with Matthew Hyland commenting, 'Bulls are in control' and predicting that Bitcoin may continue toward fresh all-time highs in July.
In conclusion, Bitcoin's current movement shows significant volatility and potential for reaching new records, despite possible short-term drops. Traders and analysts are closely monitoring the market for further changes.
