3 Key Areas Traders Watch As Bitcoin Monthly Close Occurs

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Bitcoin’s (BTC) volatility has been on full display throughout June, leaving traders confused and looking for the latest technical indicator or a major announcement that could give an idea of ​​the direction in which the price will move. .

As the month of June draws to a close, traders are now focusing BTCs on the monthly close to determine whether the futures outlook is tilted higher or lower.

1 Month BTC / USDT Chart. Source: TradingView

At the time of writing, the price of Bitcoin is still 47% of its all-time high of $ 64,873 and analysts have a mixed opinion on the return of near-term bullish momentum. Here are three perspectives analysts have in mind as the market prepares for July.

Bitcoin must hold the support of $ 34,500

A Twitter crypto survey shows that many chart watchers have identified $ 34,500 as a crucial price point that needs to be defended to establish the bullish case for Bitcoin going forward.

So far, this current period of the 2021 cycle is very similar to the 2013 mid-cycle correction.

A #BTC monthly candle close above ~ $ 34,500 would mean that BTC will continue to abide by historical mid-cycle trends $ BTC #Crypto #Bitcoin

Rekt Capital (@rektcapital) June 30, 2021

According to Twitter alias trader Rekt Capital, a close close to this level would put the market on a similar trajectory to the Bitcoin price pattern seen during the 2013 bull market which included a mid-cycle correction before the price burst at a new all-. high time later in the year.

In this bullish outlook, the price of Bitcoin should soon continue the uptrend that started in late 2020 and will theoretically lead to a new all-time high later in 2021 or early 2022 which is expected to exceed $ 100,000 depending on the stock-to-Bitcoin. . flow model.

Bitcoin stock-to-flow model. Source: Lookintobitcoin

Despite widespread acceptance and confidence in the S2F model, recent Bitcoin price action has led even Plan B, the creator of the popular model, to feel uncomfortable about the most recent BTC drop. in the lower limit of the model.

Even for me, it’s still a little uncomfortable when the price of bitcoin is at the lower bound of the stock-to-flow model. Will it hold up (like March 2019 when I released S2F, or March 2020 Covid, or September 2020 with BTC stuck at $ 10,000) and is this another buying opportunity? Or will S2F be invalidated? pic.twitter.com/iIjTC2Ncy3

PlanB (@ 100trillionUSD) June 23, 2021 Signs of a bearish blackout

As bull market advocates look for a sign to validate a rise, the June 30 price action caught the attention of another pseudonymous Twitter analyst called John Wick. According to the analyst, there is a pattern of a bearish top which can be seen in the most recent BTC chart.

#BTC (update 4h)

Just as we got off to a good start, a topping signal was printed and confirmed. Confluence of RSI bearish cross + bearish surge

Let’s see if we can hold $ 34,000 support. Otherwise, we are still tied to the beach. Resistances exceed the top $ 36,000 and $ 41,000 pic.twitter.com/RZ4IAGoi16

John Wick (@ZeroHedge_) June 30, 2021

According to Wick, Bitcoin must now maintain support at $ 34,000, otherwise the market could be on another extended period of sideways trading, tied to a range rather than an incipient move upward.

Bearish sentiments were also highlighted in the following tweet from Twitter personality Nunya Bizniz, who points out that BTC would need to close above $ 37,400 to avoid three consecutive months of decline, which historically indicated more decline at the ‘to come up.

Monthly BTC:

The month ends tomorrow.

A close above $ 37.4K would avoid 3 consecutive months of decline.

Three months of decline marked more disadvantages.

What happens?

Note: green boxes = sort term bounce pic.twitter.com/aj1IWuGXXe

Nunya Bizniz (@Pladizow) June 29, 2021 Signs of rising sentiment

As the debate over a bullish or bearish future rages on, several indicators point to the possibility of sentiment rising amid the noise.

The grayscale #Bitcoin bounty returns to zero.

Objective #Bitcoin ETF buys again.

Market sentiment appears to be picking up pic.twitter.com/CmztgqHPvE

Bitcoin Archives (@BTC_Archive) June 30, 2021

The Twitter personality ‘Bitcoin Archive’ pointed out that the grayscale Bitcoin premium is approaching zero and renewed buying activity by the Purpose Bitcoin ETF as evidence that sentiment is on the rise.

Related: NYDIG Set To Bring Bitcoin Adoption To 650 U.S. Banks And Credit Unions

Chain analyst William Clemente III also released the following chart to highlight the fact that long-term BTC holders have been piling up since late May after the price of Bitcoin hit a low below $ 29,000.

Offer of Bitcoin held by long-term holders. Source: Glassnode

Clemente said:

Bitcoin is cheap and long-term BTC holders know it. They have added 741,363 BTC to their holdings since the initial price drop in late May.

For a simplified explanation of important levels to watch out for, John Bollinger, technical analyst and creator of the Bollinger Bands, simply said that $ 41,000 and $ 31,000 are the key “logical levels” to watch out for and he also cited the area of $ 35,000 to $ 36,000 as critical support levels to watch.

These are the logical levels that I am monitoring for $ btcusd41 00035/36 00031 000 So far they have been important milestones. #Bitcoin

John Bollinger (@bbbands) June 30, 2021

The views 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 comes with risk, you should do your own research before making a decision.

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