Bitcoin (BTC), which suffered losses in July 2, was not able to recover them as traders waited for the stagnant price action to continue.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
“Downtrend acceleration” still in force
Data from TradingView and Cointelegraph Markets Pro showed that a limp Bitcoin/USD was snatching around $19,000 over the weekend.
Wall Street’s trading week was uneventful. The United States had been virtually stagnant, which provided little support for crypto volatility. Fresh from its retest of 20-year highs (DXY), the U.S. dollar Index, or DXY, lost steam and rounded 105 points.
U.S. dollar index (DXY), 1-hour candle chart Source: TradingView
BTC/USD was found to be between spot and buy liquidity in order book data from Binance, the largest global exchange. This ensured that there was no volatility until traders manipulated or increased bids or asks.
BTC/USD order books data (Binance). Source: Material Indicators
Zooming out, it was clear that bulls are not seeing a brighter future.
Current conditions for Altcoin Sherpa, a popular trading account, promised an extended period with uninspiring performance by Bitcoin. This could continue well into 2022.
It stated to Twitter followers that it would take months to accumulate the right pieces once the bottom was found.
“And the bottom might even not come for another few months.” Keep your feet on the ground for a bear market.
Rekt Capital, a trader and analyst, echoed the sentiment. He argued that Bitcoin hadn’t yet reached new macro lows or begun to consolidate.
#BTC could still be in the “Downtrend Acceleration” phase of its correction. However, this phase will precede “Multi-MonthConsolidation” phase. This phase will precede “New Macro uptrend” phase$BTC #Crypto @Bitcoin
Rekt Capital (@rektcapital), July 1, 2022
“Deleverage yourself. Place your Bitcoin in cold storage. “Sit tight,” Checkmate, a lead on-chain analyst for research firm Glassnode, said.
Volume will reach all-time highs in 2018, or will they echo 2018?
This cycle could see its lows in the next week or so, while those who are worried about the future have some hope that it will not be too far off.
Similar: Price analysis 7/1: BTC. ETH. BNB. XRP. ADA. SOL. DOGE. DOT. LEO. SHIB.
Alex Krueger, a trader, economist and entrepreneur, noted in a Twitter thread that volume denominated as BTC reached all-time highs.
He explained that trading volume is generally highest when markets capitulate.
Trading volume rises when markets collapse, which creates major bottoms. This weekly chart shows the total bitcoin volume across all BTC pairs (spot and perpetuals across exchanges). Volume reached its all-time high just two weeks ago. pic.twitter.com/6ONLibQiL2
— Alex Kruger (@krugermacro) July 2, 2022
He said that the 2018 bear market saw volume rise several weeks prior to the price bottom. If the trend continues, July could be the next stop.
Rekt Capital previously argued that the buy-side volume was not strong enough to sustain new price upside over the long-term, while also highlighting 2018’s volume moves.
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