Bitcoin Volatility Quiets Ahead of GBTC Unlocking on July 18
July 11, 2021
Bitcoin (BTC) had a calm weekend as the cryptocurrency swayed in a tight range between $33k and $34k. As expected, most of the altcoin market maintained a sideways bias because of the low volatility in BTC over the weekend.
The benchmark cryptocurrency tested the $35k resistance last week but failed to sustain the bullish traction, promptly falling to a two-week low at $32k on Thursday. That said, bulls appear to have regained control and have recovered half of last week’s crash at $34k.
However, BTC fell into consolidation between $34k and $33k as bulls struggle to maintain control. At press time, Bitcoin trades around the critical $33,750 level as we begin the new week.
Meanwhile, analysts suggest that the current volatility drought in the market could be because of the upcoming unlocking of Grayscale’s BTC Trust (GBTC) shares later this month. Reports show that this unlocking is the largest GBTC unlocking in the history of the Trust, and many expect it to trigger massive volatility in the crypto market, especially for Bitcoin, once it occurs.
The altcoin space replicated the BTC momentum, with little movements over the weekend. Ethereum currently trades above $2,120, up by +1.35% today. Other top altcoins, including BNB, ADA, XRP, DOGE, DOT, and UNI all had relatively quiet trading sessions on early Sunday with +2.28%, +0.64%, +61%, -0.8%, +0.71%, +0.43%, respectively.
Key Bitcoin Levels to Watch — July 11
As we anticipate the GBTC unlocking scheduled for the 18th, BTC currently trades within a wedge. This pattern emergence suggests that a spike (in either direction) is likely in the coming hours and days.
The immediate target for bulls is the $35k resistance, currently bolstered by the 200 SMA, as they defend the $33k support. A slip below this support level at this time could be bad for BTC price and could keep it constrained all through the week.
Meanwhile, our resistance levels are at $34,000, $35,000, and $36,000, and our key support levels are at $33,000, $32,000, and $31,000.
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