The Bitcoin price stays at $ 20,000 as Bollinger Bands approaches volatility

Bitcoin (BTC) said “no” to volatility for a third day on July 7, when Wall Street trading began with little change in mood.

The next move “probably sets the direction going forward”

Data from Cointelegraph Markets Pro and TradingView followed BTC / USD as they fluctuated just north of $ 20,000, maintaining a pattern characteristic of the week so far.

The pair stayed well within a defined range overnight, which led analysts to assume that a break up or down was next as a short-term prospect.

“Bitcoin strong consolidation of $ 20k, this can not continue forever, triangle ready to break up or down. But RSI bullish divergence tho,” Venturefounder, a contributor to the on-chain analytics platform CryptoQuant, told Twitter followers July 6th.

“BTC going above $ 21,700 gives a higher high, going below $ 18,800 gives a lower low, the next move probably indicates the direction ahead.”

Bullish signals on Bitcoin’s relative strength index (RSI), as referred to by the Venturefounder, often precede BTC price tracking, making the current RSI chart a key reference point in low time frames.

Confirming the likelihood of volatility returning, the Bollinger Bands on the daily chart remained narrow – a classic prelude to a trend taking shape.

As for which direction this trend could take, all games remained rejected on the day when caution summed up the sentiment.

“Still not convinced with this type of price action,” crypto trader Ninja commented.

“Below $ 20.6k is distribution imo, and all pumps should fade … the atomic bomb is not over.”

Ninja as well noticed that the short interest built on the stock exchange platform Bybit on the day, and gave advice on a hands-off approach to these positions wound up.

Quiet before the CPI storm

In macro markets, the US opened up modest gains, with the S&P 500 and Nasdaq Composite Index up 1% and 1.3% respectively in the first 30 minutes.

Related: Bitcoin bulls may have to wait until 2024 for the next BTC price ‘rocket stage’

One week before the May Consumer Price Index (CPI) data release, the markets remained free of turbulence over inflation signals, which in turn prevented further headwinds from affecting the performance of cryptocurrencies.

With opinions still mixed about how US economic policy will change through 2023, trader Crypto Tony acknowledged that a true return to the form of Bitcoin and altcoins may take longer than many are aware of.

“Personally, on my worst case scenario update, I do not think we will see the start of the next impulse until later next year and a new bullrun peak before 2024 – 2025,” he twitret on the day.

“I’m already placed at 22-24k and will add if we fall to 17-15k.”

Earlier, meanwhile, Cointelegraph reported on a trader’s theory that Bitcoin will confirm where the last macro bottom is by July 15.