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Bitcoin volatility takes a break as $31K BTC price yearly highs loom

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Bitcoin (BTC) denied the market fresh volatility at the June 23 Wall Street open as traders attempted to guess its next targets.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin lacks “strong confirmation” of new upside

Data from Cointelegraph Markets Pro and TradingView showed BTC price action continuing to hover around $30,000.

A second day of sideways trading thus greeted market participants as prior upside stalled close to the yearly high at $31,000.

Popular trader Daan Crypto Trades suggested that this area represented a popular invalidation point for those shorting BTC after its recent upside.

“Most of the shorts that entered during this consolidation will likely have their stops sitting above that local high at ~$30.8K,” part of a tweet read on the day.

“This makes for an excellent liquidity grab. Line in the sand is the $29.8K region & Daily Open.”

BTC/USD annotated chart. Source: Daan Crypto Trades/Twitter

Those shorts may still win out, however, according to Maartunn, a contributor at on-chain analytics platform CryptoQuant.

Noting rising open interest on exchanges against flat price performance, Maartunn noted that “flushing” that open interest has recently been accompanied by a snap drop in BTC/USD.

Trader Crypto Chase acknowledged that he had not got “strong confirmation” of an imminent continuation to $31,000.

For fellow trader Elizy, meanwhile, there was no discernible change in mood from the day prior as consolidation continued.

While having “no intention of going short,” he told Twitter followers, there was likewise not much interest in entries, while BTC price action acted in a tight range.

Wait-and-see mode returns

Elsewhere, the latest market update from crypto analytics firm Jarvis Labs underscored the unclear nature of low-timeframe price action.

Related: Bitcoin ‘parabolic advance’ means BTC price all-time high in 2023 — Trader

“I’m a bit uncertain right here, founder Ben Lilly concluded after investigating various data sets.

“I’m starting to write off $24k before options expiry, and instead lean towards a push higher into $32k range.”

Lilly referenced the upcoming options expiry on June 23, worth over $700 million. Thanks to strong accumulation, it would be a mistake to bet on the rally fizzling too soon.

“All of this tells me, one cannot be quick to fade this rally,” he concluded.

“My gut was saying yea, fade it bc the halving is too far off. But a few data points are saying the opposite. Perhaps a fade will present itself in July. For now, let’s track the data to see if the trend continues.”

Bitcoin 30-day accumulation trends chart. Source: Ben Lilly/Twitter

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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