Bitcoin (BTC) experienced reduced volatility as it approached the July 30 weekly close, leaving traders anticipating a significant long-term bullish signal.
Over the weekend, BTC/USD exhibited sideways movement, trading within a narrow $150 range.
Despite several macroeconomic data events throughout the week, the market remained calm, leading to speculations of an imminent breakdown.
Pseudonymous trader Daan Crypto Trades highlighted that the compression in price action had not been seen since the beginning of 2023, suggesting that a substantial move might be on the horizon.
Comparisons were drawn to earlier in the year when Bitcoin’s Bollinger Bands resembled the current conditions before the price surged 70% in the first quarter.
Analysis of the Binance BTC/USD order book by monitoring resource Material Indicators revealed that whales’ buying pressure coincided with increased resistance near $30,000.
However, they expected significant support to remain until the weekly and monthly candle closes on July 29.
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The potential bullish cross on Bitcoin’s monthly moving average convergence/divergence (MACD) indicator drew significant attention as market observers noted its proximity to confirmation.
Historical patterns indicated that this could lead to upside gains in the future.
Although the cross held positive implications, Trading resource Stockmoney Lizards cautioned that Bitcoin might still be in its summer correction mode.
A chart presented by Stockmoney Lizards displayed a prior monthly MACD cross in late 2015, which preceded Bitcoin’s surge two years later, resulting in the previous cycle’s all-time high of $20,000.
The cross signaled preparations for the significant price movement that followed.
While lower-timeframe MACD crosses can sometimes be false alarms, the significance of a weekly cross in August 2021 was evident as it preceded the move to Bitcoin’s current all-time highs in November of that year.
As the weekly close approached, traders kept a close eye on Bitcoin’s price action, hoping to witness the potential bull signal and foreseeing the implications it might have on the future trajectory of the cryptocurrency.
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