01.07.202116:00 Forex Analysis & Reviews: BTC sank below $34,000 and accumulates volumes for retesting $36,000: Forecast

Bitcoin started the current week with a positive attitude, which was the reason for the successful consolidation of the asset at around $34,000. On June 30, the coin moved to the next difficult milestone in the area of $36,600 but failed to gain a foothold above it. As a result, the coin went on correction and began the first day of July with a slight drop.

As of 11:00 UTC, Bitcoin is quoted at around $33,200. Over the past day, the asset fell by 4%, after it could not stay in the support zone at around $34,000. This scenario was indicated by the main technical indicators of the asset. On July 1, BTC fluctuates and does not show a clear trend to rise or fall. The local dynamics of the price movement of Bitcoin indicate instability and tug of war in the area from +0.5% to -0.5%. This local uncertainty scenario is aggravated by low trading volumes, which do not exceed the $29 billion mark.

Despite breaking through the key support zone, BTC found a solid bottom near the local limit of $32,200. The next main support point for Bitcoin in a downward movement will be the figure of $30,000. However, as of 11:00 UTC, the asset has pushed off from the local support level and is moving towards $34,000. At the same time, the main technical indicators indicate a clear bearish mood. The MACD indicator went beyond the red line, and the RSI indicator jumped above 80, which indicates that the asset is clearly overbought. Given all this, you should not count on the protracted growth of Bitcoin. Most likely, the coin will climb above the $34,000 mark, after which it will resume fluctuations in a narrow range.

Long-term indicators indicate a change of movement and an increasing bullish mood. This is evidenced by a significant decrease in offers for Bitcoin. At the same time, the volume of cryptocurrency on non-custodial wallets continues to grow. This suggests that long-term holders continue to accumulate coins, and the local sale among medium-term users has come to naught. There is a redistribution of Bitcoins on the market. This was evidenced by a record decrease in the number of unique BTC addresses and social activity. In the medium term, this will benefit the market and Bitcoin, since most of the coins will be in the hands of long-term investors. This will help protect the market from manipulations and impulsive decisions of the retail audience. However, the downside of the situation is that at the next stage of growth, BTC will count on retail traders. This is stated by the analysts of the world's leading banks, who agree that at this stage, the interest of institutions in Bitcoin has fallen significantly.

The market is at the stage of recovery and accumulation of the necessary volumes. Given the relative calm of the news background and the positive mood of investors, we can expect an attempt to launch a bullish trend in the near future. However, for this, Bitcoin needs to jump back to the $34,000 mark and successfully test the $36,600 milestone to exit the correction corridor. Given the lack of interest on the part of institutions and record-low options for Bitcoin, it will be difficult to carry out this task without a powerful impulse.