Bitcoin (BTC) struggled to break above $31,000 as the Wall Street opened on July 3, as market participants searched for a catalyst to drive the price higher. The price of BTC remained in a tight range following the weekly close, with only modest attempts to surpass the $31,000 mark.
Market analysts pointed to nearby resistance levels that needed to be overcome for BTC to see a significant upward movement. According to trading team Stockmoney Lizards, the more frequently a resistance line is tested, the weaker it becomes. They argued that eventually, all sell orders at the $31,000 level would be filled.
To provide further context, Stockmoney Lizards shared a chart on Twitter that compared BTC’s price action in 2023 with its behavior before the bull market in 2017. The chart hinted at the possibility of BTC reaching new all-time highs in the future.
Another popular trader and analyst, Rekt Capital, suggested that the overall cryptocurrency market capitalization was also poised for a breakout. He tweeted that if the total crypto market cap could break through a specific resistance level, it could see gains of up to 10% to 23% over time.
However, not everyone was optimistic about BTC’s immediate prospects. Trader Crypto Tony believed that unless BTC managed to break through the $31,000 resistance zone, it would likely experience a drawdown to $28,000. He expressed a preference for a pump in the price instead.
Consensus was building around the possibility of BTC topping out soon, potentially in the mid-$30,000 range, after a final leg higher. This notion was supported by the June monthly close, which showed a significant move for BTC on monthly timeframes.
Technical analyst Michael Nauss highlighted that BTC had closed above an adjusted volume-weighted average price (AVWAP) for the first time since the 2021 all-time highs. The AVWAP considers important support and resistance levels based on trader behavior. This suggests a resurgence in BTC’s price not seen in two years.
Caleb Franzen, CEO of Cubic Analytics, echoed Nauss’s sentiment and encouraged market observers to have a longer-term perspective. He referred to the price increase from $26,000 to new yearly highs of above $31,000 following the announcement of the BlackRock ETF application. Franzen emphasized the importance of focusing on higher highs and higher lows instead of short-term fluctuations.
Overall, the Bitcoin market remained in a tight range as traders awaited a catalyst to push the price higher. Analysts presented different perspectives, with some anticipating a breakout and others expecting a downside move. The broader cryptocurrency market also showed signs of potential movements, signaling that the near future could bring significant volatility.
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