Bitcoin (BTC) failed to recover the latest losses on July 2 as traders brace for the continuation of the stagnant price action.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
“Accelerating downward trend” is still in effect
Data from Cointelegraph Markets Pro and TradingView tracked a weak tumble for BTC/USD as it cut around the $19,000 mark over the weekend.
The trading week on Wall Street ended without surprises, with US stocks practically stagnating – providing little impetus to cryptocurrency volatility. The US Dollar Index, or DXY, which has rebounded from twenty-year highs, ran out of steam to surround 105 points.
US Dollar Index (DXY) candlestick chart. Source: TradingView
Order history data from the world’s largest exchange Binance showed that Bitcoin/USD is stuck between buying and selling liquidity near the spot price, ensuring there is no volatility until traders maneuver or add significantly to bids or orders.
BTC/USD (Binance) order book data. Source: Material Indicators
Zooming out, the outlook hardly seemed more optimistic for the bulls.
For the popular Altcoin Sherpa trading account, the current conditions promised an extended period of uninspired performance from Bitcoin that could run into 2022.
“It will take months for it to be chipped and piled up once the bottom is found,” she told her Twitter followers.
“And the bottom may not come even for a few more months from today. IMO beware of a long bear market.”
The sentiment was echoed by trader and analyst Rekt Capital, who argued that Bitcoin had not yet reached new macro lows or started to consolidate.
“Taste yourself. Get your Bitcoin in cold storage. Hold on,” added Checkmate, lead chain analyst at research firm Glassnode.
Will Volume Rise Ever Be Echo of 2018?
The next week or two could be the lowest in this cycle, and at the same time, it offers a degree of hope for those worried that the bottom is still months away.
Related: Price Analysis 7/1: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, LEO, SHIB
In a Twitter thread that day, economist, trader and entrepreneur Alex Krueger noted that the volume denominated in BTC reached an all-time high last month.
“As a rule of thumb, trading volume is highest when markets give up,” he explained.
He added that in the 2018 bear market, the highest volume ever actually occurred several weeks before the price fell, and if this time it follows the trend, July could be the next day’s location.
Previously, Rekt Capital argued that buy-side volume was not strong enough to sustain the new price hike in the long term, while also highlighting the volume moves of 2018.
The opinions and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.