June has been a rather uninteresting month for Bitcoin. The cryptocurrency largely ranged between $9,000 and $10,000, with each break above or below this range being fleeting.
One interesting trend seen throughout the past four weeks has been BTC’s propensity to set lower highs, as it has been slowly grinding down to the lower end of its well-established trading range.
This seems to indicate that it will close its monthly candle in the coming few hours on a low note, disappointing bulls who were hoping to see a close at, or above, $10,000.
There are now a few factors that analysts are closely observing for insight into where the benchmark cryptocurrency may trend following its upcoming monthly candle close.
It does appear that July is positioned to be a volatile month for BTC, as its June candle is set to be one of the smallest seen in over a year – pointing to the strength of its recent consolidation phase.
Some top traders expect this volatility to favor the crypto’s buyers.
Bitcoin’s Monthly Candle Close Shows Just How Intense Recent Consolidation Has Been
Between May 31st and June 1st, Bitcoin’s price rallied from lows of $9,400 to highs of nearly $10,400.
This marked the highest price levels the cryptocurrency saw this month, as its price began sliding lower in the time since.
It is important to note that the decline from these highs was gradual and can largely be categorized as a slow grind lower due to it entering multiple consolidation phases along the way.
Bitcoin is now trading within the lower end of its well-established trading range between $9,000 and $10,000.
At the time of writing, Bitcoin is trading down less than 1% at its current price of $9,150. This marks a slight rebound from recent lows of $8,900 that were set late last week.
The price action seen throughout the past month is about to cause BTC to post the tightest monthly candle it has seen in over a year. This signals that volatility may be imminent.
“BTC – the monthly candle closes tomorrow, looks like Bitcoin will have its tightest candle body in over a year,” one analyst explained.
Image Courtesy of Big Chonis. Chart via TradingView.
BTC Remains Well-Positioned to Rally Towards $13,000
As NewsBTC reported yesterday, Bitcoin currently has a major liquidity pool sitting around $10,500. These levels tend to be visited by assets at some point, and one analyst believes it will help spark a BTC rally up to $13,000.
“Macro BTC context: still think we’re heading towards $13K mid term. Massive liquidity pool around 10.5k, price tends to visit those sooner or later,” one respected pseudonymous trader explained.
Image Courtesy of SalsaTekila. Chart via TradingView.
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Charts from TradingView.