Bitcoin (BTC) failed to stay above $30,000 at the July 20 Wall Street open, with one analyst predicting a return to lower levels.
BTC price drops to $30,000
Data from Cointelegraph Markets Pro and TradingView tracked weak BTC price action following rejection at the 21-day simple moving average (SMA).
Sitting at $30,400, that SMA provided bitcoin with its highest level of the day, after which the market retraced its intraday progress perfectly.
Reacting to the market action, Michael van de Poppe, founder and CEO of trading firm Eight, warned that lower levels could be coming.
“Failure to overcome the critical area looks like we will have another low for bitcoin,” he added. Said his twitter followers.
Popular trader Dan Crypto Trades said that volatility could be back due to rising open interest.
Open interest rises sharply near these levels.
More volatility is likely ahead #bitcoin,
take care of your safety pic.twitter.com/GqUnaH20Ha
– Dan Crypto Trades (@DanCrypto) 20 July 2023
“#Bitcoin has found support at the lower end of the range and the 4H 200MA/EMA,” he added Ongoing In a subsequent tweet about the four-hour 200-period moving average and the exponential moving average.
“The upside has not been very solid so far and the lower time frame has been extremely volatile. The $30.5K and $29.5K remain areas of interest for me in the near term.
Meanwhile, the on-chain monitoring Resource Content indicator took note of the importance of the 21-day SMA, suggesting that a temporary bounce could be coming for BTC/USD.
Part of the July 20 analysis is, “A strong rejection of technical resistance at the 21-day EMA and more calls to pile up $31k could signal that things are just getting worse.” Reading,
“If the bulls want a legitimate chance to get past those selling walls, they need to regroup here and herd.”
Initial printout of the Binance BTC/USD order book Has shown Bids lacked liquidity just below the $30,000 mark.
Labor market data pushes the US dollar higher
Meanwhile, macroeconomic events on July 20 focused on strong tech earnings and a slowdown in jobless claims in the United States.
Related: Bitcoin Traders Say ‘Get Ready’ as BTC Price Poised for 2023 Bull Market
The effect on the US dollar was evident, with the US Dollar Index (DXY) reaching nearly 101 for the first time in several days.
“So today, initial jobless claims were lower than previously and forecast, so the expected trajectory of job growth is slowing (lower is good for the US dollar)” Popular Trader Skew wrote part of a response.
Cointelegraph previously wrote about the changing dynamics between BTC price performance and DXY strength.
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This article does not constitute investment advice or recommendations. Every investment and trading move involves risk and readers should do their own research when making decisions.
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