Bitcoin Trading Volume Plunges to Early 2021 Levels, Fueling Concerns of $25K Potential Return

As Bitcoin (BTC) exhibited more sideways behavior, echoing the trend seen during the weekend and the previous week. The lack of significant market-moving events resulted in a brief spurt above $29,500 after the weekly close.

However, bulls struggled to sustain momentum, leaving all eyes on the monthly close as a potential trigger for increased volatility.

Monitoring resource Material Indicators provided an analysis of the BTC price action, noting that the cryptocurrency briefly surpassed $29,500, but failed to gain enough bullish momentum to advance further. As the month drew to a close, traders remained cautious about a potential trend shift.

Material Indicators uploaded a snapshot of the BTC/USD order book on Binance, revealing that $29,500 was becoming a crucial resistance level, drawing in sellers. For bulls to regain control, they must overcome this resistance to trigger a potential upward move.

Additionally, traders kept a close watch on the 50-day and 100-day moving averages (MAs) positioned at $29,450 and $28,460, respectively. These MAs formed key trend lines, potentially influencing the cryptocurrency’s direction both to the upside and downside.

As the trading day of July concluded, market participants eagerly awaited the monthly close, which could offer insights into the next phase of Bitcoin’s price action.

The monthly closing price often serves as a significant indicator of potential shifts in market sentiment and volatility.