As traders balance recent gains against impending macroeconomic uncertainty, Bitcoin is currently moving sideways and exhibiting signs of price consolidation. However, with July highs still very much in play, market analysts believe that this quiet period could be the quiet before another leg up.
As of this writing, Bitcoin is unable to break through either resistance or support and is trading in the $61,000–63,000 range. Following a surge that saw Bitcoin reach almost $64,000 last week due to waning inflation data and continued institutional interest through spot ETFs, there is now consolidation.
Traders Expect Another Move Soon
Bitcoin is currently trading within a well-known post-breakout range, which is frequently a staging area before the next big price move, according to cryptocurrency analyst Rekt Capital. He says a retest of local highs is still very likely as long as Bitcoin stays above the 50-day moving average and does not break below $60,000.
According to other traders, a possible bull flag is forming, which, if confirmed, might cause Bitcoin to return to $65,000 or higher. On-chain data indicates a rise in short-term holder activity, which is frequently an indication of distribution rather than accumulation, but sentiment is still cautious.
Leveraged longs may be taking a break, as evidenced by the cooling of funding rates across futures markets. In the event that purchasing volume resumes in the upcoming days, this creates room for a more robust upward trend.
Macro and ETF Flows Still in Focus
The direction of Bitcoin will continue to be influenced by broader economic signals even as the cryptocurrency market takes a break. Volatility may be triggered by any surprises in future inflation reports or remarks from the Federal Reserve. In the meantime, consistent institutional support is suggested by the consistent inflows into spot Bitcoin ETFs.
Although consolidation may seem uninteresting, history demonstrates that it frequently precedes significant actions. The next candle could determine the course of the rest of July, so traders are keeping a close eye on it.
Also read: Charles Schwab Opens Doors to Bitcoin and Ether Spot Trading
