The two most prominent cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) are still sluggish, with the former pivoting around $30,000. Trading at $29,950, the BTC price remains unchanged over the last 24 hours, with the trading volume shrinking to $11 billion from $13 billion recorded on Wednesday.
Bitcoin boasts $582 billion in market capitalization, with the digital asset’s cumulative losses in the last seven days amounting to 1.2%.
Bitcoin Price Moves In Tandem With Momentum and Narrative Traders
Apart from a select group of altcoins that have been rallying including XRP, XLM, ADA, and SOL, the crypto market is quiet and lethargic. These tokens are outperforming their peers as investors seek exposure following Ripple’s partial win in the long-standing legal battle with the Securities and Exchange Commission (SEC).
“In short, we’re seeing a return of investors that had previously been spooked by recent regulatory measures,” Markus Levin, co-founder of XYO Network said in a written statement to CoinDesk.
According to the managing Partner of Web3 investment fund Generative Ventures, Lex Sokolin, the lethargy being witnessed is the cyclical nature of the largest crypto. He argues that Bitcoin price often experiences ‘run-ups’ in anticipation and response to the news, and then a sell-off once the positive news has been incorporated into the price.”
“Bitcoin moves in cycles mainly due to momentum and narrative – “the market animal spirits,” as Sokolin describes them.
What’s Next As Bitcoin Price Lengthens Consolidation?
Bitcoin price is still doddering in the same rectangle pattern, with bulls presenting a valid case at $30,000. Although there have been dips below this level, they have not been significant to cause panic-selling among traders and investors who are still betting on a potential rally to $35,000 and $38,000.
If declines ensue below $30,000, the 50-day Exponential Moving Average (EMA) would be the first support to confront the sellers. Some market watchers foresee a drop to $28,000, a support reinforced by the 100-day EMA (in blue), where Bitcoin price would sweep new liquidity for the much-awaited rally.
Bulls are doing all they can to keep Bitcoin around $30,000 with minor dips in the upper $29,000 range, considering the Moving Average Convergence Divergence (MACD) has since July 5 been pushing a bearish narrative emphasized by a sell signal.
Holding above $30,000 is no longer feasible for the resumption of the uptrend, Bitcoin must build momentum to break out from the bullish rectangle pattern to keep bears suppressed and without much say in the direction the coin takes next.
That said, the up and down movements may continue until BTC blasts through resistance at $31,500 and aim for the next hurdle at $32,000.
Is This The Start of a New Macro Uptrend
The spike in the number of companies interested in offering a spot Bitcoin exchange-traded fund (ETF) in June fueled the sharp climb from lows slightly below $25,000 in early June to highs around $31,500.
That uptrend could be attributed to momentum and narrative traders who bought the news but are still holding on to their BTC in anticipation of an extended rally. Subsequent news and events have been scarce in July, with Bitcoin markets witnessing a slump in activities.
However, the Money Flow Index (MFI) reveals that more funds are starting to flow into the market. If the inflow volume continues to outpace the outflow volume, Bitcoin price will likely begin a macro uptrend.
#BTC is now in the post-breakout Upward Acceleration Phase
The Macro Downtrend is over
— Rekt Capital (@rektcapital) July 15, 2023
Analysts at Rekt Capital are confident that “Bitcoin is now in the post-breakout upward acceleration phase.” This implies that the macro downtrend is long gone and a new uptrend has started. In other words, investors may want to seriously consider stuffing their wallets ahead of the next bull run likely to begin in 2023.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.