Bitcoin (BTC) failed to hold above $30,000 after the July 20 Wall Street open, with one analyst forecasting a return to range lows.
BTC/USD 1-hour chart. Source: TradingView
BTC price sinks through $30,000
Data from Cointelegraph Markets Pro and TradingView tracked weak BTC price action after a rejection at the 21-day simple moving average (SMA).
Sitting at $30,400, that SMA provided the day’s high for Bitcoin, with the market then retracing its intraday progress entirely.
BTC/USD 1-day chart with 21-day SMA. Source: TradingView
Reacting to the market action, Michaël van de Poppe, founder and CEO of trading firm Eight, warned that lower levels could well come next.
“Not breaking the crucial area, seems like we’re going to have another sweep of the low for Bitcoin,” he told his Twitter followers.
BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
Popular trader Daan Crypto Trades added that volatility could return thanks to rising open interest.
Open Interest rising sharply near these levels.
Likely more volatility ahead for #Bitcoin.
Stay safe pic.twitter.com/GqUnaH20Ha
— Daan Crypto Trades (@DaanCrypto) July 20, 2023
“#Bitcoin Has been finding support on the bottom of the range and 4H 200MA/EMA,” he continued in a further tweet about the four-hour 200-period moving average and exponential moving average.
“So far, the bounce has not been very convincing yet and the lower timeframes are extremely choppy. $30.5K and $29.5K remain my levels of interest in the short term.”BTC/USD annotated chart. Source: Daan Crypto Trades/Twitter
On-chain monitoring resource Material Indicators meanwhile noted the significance of the 21-day SMA, suggesting that a temporary peak may be in for BTC/USD.
“A hard rejection from technical resistance at the 21-Day Moving Avg and more asks stacking at $31k could indicate things are getting toppy for the moment,” part of the July 20 analysis read.
“Bulls need to regroup here and gather the herd if they want a legit chance to stampede past those sell walls.”
A prior print of the Binance BTC/USD order book showed a lack of bid liquidity immediately below the $30,000 mark.
BTC/USD order book data for Binance. Source: Material Indicators/Twitter
Labor market data boosts U.S. dollar
Macroeconomic events on July 20 meanwhile focused on strong tech earnings along with a slowdown in United States jobless claims.
Related: Bitcoin traders say ‘get ready’ as BTC price preps 2023 bull market
The impact on the U.S. dollar was pronounced, with the U.S. Dollar Index (DXY) gaining ground to near 101 for the first time in several days.
“So today, Initial Jobless Claims was less than previous & forecasted so the trajectory expected for increasing layoffs is slower (lower is good for USD),” popular trader Skew wrote in part of a response.
U.S. dollar index 1-day chart. Source: TradingView
Cointelegraph previously wrote about the changing dynamics between BTC price performance and DXY strength.
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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.