Bitcoin price sideways, holds the $30,000 support for two weeks but not see any strong buy signals

By Selena On Jul 7, 2021

Bitcoin sideways left traders and investors with little sense of direction. The cryptocurrency trading remains in a tight range and the price is down about 6% over the past week. At press time, Bitcoin price is trading at $34,131, recorded a slight decrease.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price held the $30,000 support for two weeks, accumulation is taking place at lower levels

As AZCoin News reported, BTC held onto its bullish momentum over the weekend. However, this move was not supported by the huge trading volume. Moreover, the low trading volume shows that whales are at a low level without much action.

The seven-day average of BTC daily price volume reached the lowest level since December 2020, according to Arcane Research.

“The 4th of July celebration could partly explain the slow weekend, but the appetite for trading Bitcoin is certainly not very high in this range-bound environment,” Arcane wrote.

The recent decline in BTC spot volume | Source: Arcane Research

The slowing volume also reflects indecision between buyers and sellers. Bitcoin faces strong resistance from the intermediate-term downtrend since April. The current range can be difficult to navigate, placing some traders on the sidelines until a decisive breakout or breakdown is confirmed.

However, Bitcoin price has successfully held the $30,000 support for two weeks, which suggests that accumulation is underway at lower levels. The Crypto Fear and Greed Index rose to 29 on July 5, its highest level in about three weeks. This suggests that aggressive investors may have started bottoming.

The Crypto Fear and Greed Index on today | Source: Alternative.me

If the bulls successfully hold the $30,000 level in Bitcoin for a few more days, trading interest is likely to rise further. Institutional investors usually don’t buy in a bear market and wait until the price stabilizes. Once that happens, volume is likely to pick up and a stronger bounce can be expected.

As noted by Glassnode, on-chain activity remains relatively muted for Bitcoin and Ethereum as USD denominated transfer volume returns to Dec-Jan 2020 levels. You can see Bitcoin is settling ~$236M/day. While Ethereum is settling $160M/day in $ETH transfers.

Source: Glassnode

The altcoin market is also unremarkable. The bright spot is that ETH is up nearly 5% on the day, currently trading around the $2,320 region. This must be related to the Ethereum update to reduce ETH supply likely coming in August. The next update to the Ethereum blockchain, which calls for changing how ETH is paid out to miners, is likely to come on August 4 with block 12,965,000, not mid-July as earlier suggested.

That block number was officially proposed today on Github by developer Tim Beiko, the Ethereum Foundation’s point person on network upgrades.

Yep, unless someone objects in the next 24h, London should land on August 4th.

A few client teams have “?’d” it already, but we want to be sure no one has a serious objection.

Keep an eye out ? https://t.co/KWRCvyrWR1

— Tim Beiko | timbeiko.eth ?? (@TimBeiko) July 6, 2021

The second bright spot is UNI, the native governance token of the Ethereum-based decentralized exchange Uniswap. It has continued its upward momentum from the last week and gained even further value over the past day.

As of this writing, Uniswap’s token is up almost 9% over the last 24 hours to a current price above $22, with its one-week rise nearing 25%. Looking longer-term, UNI has jumped up nearly 39% in value over the last 14 days.

And finally, it is impossible not to mention Alpha Finance Lab (ALPHA). Since hitting a low of $0.30 on June 22, the price of ALPHA has rallied 196% to a monthly high at $0.89 on July 6 as its 24-hour volume spiked 433% to $293 million.

ALPHA/USD 4-hour chart | Source: TradingView

Reasons for the building momentum for ALPHA include protocol improvements to Alpha Homora V2, the launch of the Alpha Launchpad, and an attractive price per earnings ratio (P/E) when compared to competing platforms.

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