Bitcoin Makes History With Highest Monthly Close, But Volume Is Still Bearish
With the month of June having drawn to a close, Bitcoin has now managed to set a new record. According to a report by well-known crypto analyst Rekt Capital, the month saw Bitcoin complete its highest monthly close ever in the history of the cryptocurrency. However, while this would usually be a rather bullish development for the digital asset, there are still some bearish factors that continue to threaten what should otherwise be a bull market.
The Breakout Confirmation Of The Year
The Bitcoin price, completing the month of June with the highest monthly close ever, has led to a bullish confirmation for the price. This close above the $106,000 level suggests that bulls have now pitched their tents above the psychological level of $100,000.
Rekt Capital explains that while this monthly close has confirmed a breakout, there is still some work for bulls. The main thing here is the fact that buy-side volume remains low, and if the Bitcoin price is to completely break out from here, then the buyers would have to step up their game
Volume in general remains muted, which would explain why the BTC price has continued to trade in a sideways movement. Therefore, for there to be any major move in price, the Bitcoin volume would have to start moving or risk a crash from here.
To put this in perspective, data from the Coinglass website shows that the BTC daily trading volume had fallen by more than 60% in the last week of June. The month had peaked as high as $146 billion on June 23 after the crash below $102,000. However, as the price rose, volume dropped, leading to a low close.
By June 29, the daily trading volume had fallen as low as $22 billion, before rising the next day to close out June 30 at $44.7 billion. With this has emerged a worrying correlation, showing that as the price has increased, volume has dropped, suggesting that investors are becoming more and more wary the higher the Bitcoin price goes.
If this low volume continues, Rekt Capital does see some bullish moves in Bitcoin’s future. The first would be a retest of the range high above $102,000 in order to capture more buy-side liquidity for another push. However, if this level doesn’t hold and volume fails to pick up buy-wise, then there is still the risk of losing support and falling toward $93,000.
In the event of buy-side volume rising at the range high, then there is the possibility of an upshoot. With the Bitcoin price sitting so close to all-time highs, a 10% move would put it at new peaks, especially if the bulls emerge to defend the $102,000 support.
Featured image from Dall.E, chart from TradingView.com
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