On July 9 Bitcoin and the wider cryptocurrency market saw a moderate relief rally that helped recover some of the losses seen on Thursday but a handful of analysts continue to caution that BTC could still drop to the $24,000 to $29,000 range in the short-term.
Sentiment among traders received a slight boost after Bitcoin price reversed course and rallied back to $34,000 but the price still remains trapped between key resistance and support levels and the lack of buy volume is still a valid concern.
Tempting Beef, a pseudonymous trader on crypto Twitter, also pointed out that the total crypto market cap and altcoin market cap remain in a precarious position.
#Crypto total market cap and altcoin market cap both failing to flip their key pivots and forming lower highs. Me sad.
— Tempting Beef (@tempting_beef) July 8, 2021
Élie Le Rest, partner at digital asset management firm ExoAlpha, also pointed out that along with the “non-directional trend” in BTC, the market is also “witnessing a decrease in trading volume” that has led to “more wild reversals within the range, hurting directional traders.”
Le Rest said:
“Inside this range, we are witnessing pumps and dumps with prices slowly grinding higher before being quickly slammed down, typical of low liquidity markets.”
Due to the market volatility, Le Rest sees market participants staying on the sidelines as they wait “for the Grayscale trust to stop offloading their Bitcoins and for the Chinese regulatory crackdown to cool-off.”
Le Rest also pointed to the scrutiny financial regulators all over the world are putting on…