Bitcoin (BTC) bulls were facing a critical level of $31,000 on July 4 as the closure of the United States market created an opportunity for increased volatility. The price of BTC attempted to solidify its overnight gains, reaching a peak of around $31,400 before momentum began to fade. As a result, BTC/USD remained within a narrow trading range.
Despite not reaching new yearly highs yet, market participants were optimistic about Bitcoin’s performance on lower timeframes. DecenTrader, a trading suite, even stated that Bitcoin was looking bullish across virtually all timeframes on one of its proprietary trading tools. Philip Swift, co-founder of DecenTrader and creator of on-chain data resource LookIntoBitcoin, added that it felt like the market was getting ready for a significant upward movement.
Michaël van de Poppe, founder and CEO of trading firm Eight, predicted that rapid gains would only occur once BTC/USD surpassed $32,500 to establish new highs. He summarized the current situation as “good consolidation” for Bitcoin, noting that it had swept some highs but lacked acceleration. According to van de Poppe, the real acceleration would happen above $32,500, and until then, Bitcoin’s progress would be slow.
On the other hand, some analysts continued to believe that Bitcoin would experience lower levels in the second half of 2023 after reaching a midterm top. The mid-$30,000 range has become a popular target for the year’s highs. A well-known trader, Crypto Tony, stated that the longer Bitcoin stays above $25,000 on the macro level, the more likely it is that a macro bottom has been reached. However, he still anticipates a significant drop later this year, which would likely be part of a larger accumulation zone.
In terms of on-chain data, analytics firm Glassnode reported ongoing accumulation among smaller entities in the Bitcoin investor spectrum. These entities, referred to as “shrimp” and defined as wallets containing less than 1 BTC, have been steadily increasing their holdings by over 33,000 BTC per month on a rolling basis. This represents a significant change in position for the shrimp class, with only 2.5% of trading days recording a larger monthly position change. As a result, the total coins held by the shrimp class now amount to 1.33M BTC.
It’s important to note that this article does not provide investment advice or recommendations. Investing in Bitcoin, like any other asset, carries risks, and readers should conduct their own research before making any decisions.
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