Bitcoin (BTC) showed resilience as it held the $30,000 support level on July 17, despite observers predicting a potential drop. The lack of volatility in BTC/USD over the weekend indicated a stagnant market with no significant catalysts for change in risk assets. On-chain monitoring resource Material Indicators described the current state as a battle between Bitcoin bulls and bears, stating that both sides are fighting for dominance. While bears gain some momentum, the bulls continue to provide support at $30,000. However, it is too early to declare a confirmed bull breakout as there hasn’t been a proper test of resistance. Patience and discipline are required during this period of uncertainty. Material Indicators co-founder Keith Alan suggested that if the $30,000 support level is breached, Bitcoin could find support at key trend lines, including the 200-week moving average at $27,000. This aligns with predictions from other traders.
Spot and Derivatives Markets Show Divergence, Leading to Short-Term Selling Pressure
Traders Skew and Daan Crypto Trades observed a “heavy divergence” between spot and derivatives markets, indicating a short-term advantage for sellers. Trader CJ expressed a clear bias towards short-term selling, expecting BTC’s price to reach at least the range lows or potentially break down from the current range. However, if Bitcoin manages to reclaim the inefficiency and the April high, it could signal a strong recovery. The discrepancy between spot and derivatives markets adds to the perplexity of Bitcoin’s price movement.
Concerns also arose regarding Bitcoin’s declining dominance in the crypto market. Popular trader Jibon expressed his concern over Bitcoin’s dip below 50% dominance, considering it unfavorable for BTC. Trading firm QCP Capital linked this decline in dominance to recent regulatory events in the United States. QCP Capital stated that Bitcoin’s dominance is likely to break its recent uptrend and decrease further until the decision on the BTC physical ETF or until macro factors take over again. The recent legal issues faced by the U.S. Securities and Exchange Commission regarding the sale of altcoin XRP (XRP) as unregistered securities was seen as a mixed blessing for investors. Bitcoin, being positioned as the “anti-security” coin, may lose ground to altcoins as investor confidence in the U.S. market returns.
Bitcoin’s price remains steady at $30,000 despite the ongoing battle between bulls and bears. The lack of catalysts and the divergence between spot and derivatives markets contribute to the perplexity surrounding Bitcoin’s price action. The declining dominance of Bitcoin in the crypto market is a cause for concern, and recent regulatory events in the United States may further impact its position. Overall, the future movement of Bitcoin’s price is uncertain, and market participants should exercise patience and discipline during this period.