Bitcoin's Unrelenting Oscillation: Weakening Bearish Forces, Bullish Momentum Awaiting?On July 5th, Bitcoin halted its decline after forming a hammer candlestick, entering a range-bound trading pattern. Despite this ongoing consolidation, bearish sentiment has been gradually waning
Bitcoin's Unrelenting Oscillation: Weakening Bearish Forces, Bullish Momentum Awaiting?
On July 5th, Bitcoin halted its decline after forming a hammer candlestick, entering a range-bound trading pattern. Despite this ongoing consolidation, bearish sentiment has been gradually waning. Although recent retracement has occurred, prices have consistently avoided breaking below the previous lows, while the $60,000 mark remains a resistance level. Notably, the lack of significant price drops amidst pressure further reinforces the weakening bearish forces.
Currently, the Bitcoin price has reached the resistance of the daily Bollinger Band middle line, with minimal increase in buying volume. This indicates that from a medium-term perspective, Bitcoin is likely to continue consolidating for some time.
The CPI data released on July 11th was clearly positive, but why hasn't the Bitcoin price surged? I believe this is likely because the market is preparing for a larger price upswing. The release of favorable CPI news will attract investors who trade based on news. However, if the price doesn't rise in a short period, these investors will begin to doubt, while bears will capitalize on the opportunity to proclaim "buy the rumor, sell the news." In such a scenario, initially bullish investors might hesitate and choose to remain on the sidelines.
Market makers leverage this psychology, deliberately creating an environment where no one is willing to enter, allowing them to accumulate chips with ease. Looking back at past market trends, you'll find that market makers employ a limited number of tactics, often using the same strategies time and again, achieving remarkably successful results.
Market shifts frequently emerge unexpectedly. Based on the current market dynamics, the likelihood of a significant Bitcoin price drop is extremely low. As I previously stated in an earlier article, the average cost of Bitcoin mining sits between $5-5.5 thousand, making it improbable for the price to fall below this level.
During Bitcoin's consolidation period, other cryptocurrencies will have opportunities to rise. I've consistently maintained this stance: bullish corrections are a prime opportunity to enter the market, not a cause for panic. Once the price begins to climb, it becomes easy to chase the rally.
The above analysis solely reflects personal opinions and does not constitute any investment advice. If you find this article helpful, please feel free to follow my account.
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