Recently, the value of the first cryptocurrency, BTC/USD, has not shown high fluctuations at the end of the week. Will this trend change in the coming days?
On Sunday, July 4, the Bitcoin price is just above $35k. The first cryptocurrency fell in price after failing to gain a foothold above the $36k mark at the end of June. The price had dropped to $32k on Friday, where it found traction amid a weaker US Dollar.
BTC/USD on Fed’s hawkishness
The Fed’s fresh hawkish reiteration about cutting the bond-buying program sooner than expected weighed on the BTC/USD during the week and put the rally on the backfoot.
BTC/USD on NFP
The NFP data disappointed the Greenback investors as unemployment rose to 5.8% for June. Despite the upsurge in jobs, the US Dollar could not retain the rally and eventually provided support to the BTC/USD. The cryptocurrency began rising from under $33k and is now posting gains above $35k.
What’s more to come?
In the spring, during the weekend, strong price movements took place on the crypto market. However, in recent weeks, the situation has changed, and now trading is calmer.
This weekend, one should not expect a fundamental change in the dynamics of bitcoin. But consolidation is observed locally at the bottom range of $30-42k, which is relevant for the new month.
The consolidation above or below the boundaries of this consolidation will signal the development of a directed movement towards the breakout with the prospect of moving to an amplitude equal to $10-12k.
Summer is a period of vacations, and statistically, there is no abnormal activity in the financial markets, explained Andrey Podolyan, CEO of Cryptorg Exchange. That’s why in the past few weeks, nothing special has happened on the crypto market on the weekend.
“Bitcoin is currently squeezed in the so-called sticky zone from $31k to $35k and is unlikely to overcome these boundaries at the weekend,” the expert concluded.
BTC/USD technical view: More upside to come?
The price managed to move beyond the 20-period SMA on the 4-hour chart. But the volume is too low on the weekend, lying below the average, which means that sellers might have closed their positions during the weekend that helped the buyers temporarily dominate the market. Apparently, the path of least resistance lies on the upside, with next targets at 36,650 ahead of 39,200 and then 41,300.
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Saqib Iqbal
