Bitcoin tried to break through the $108,000 mark again at the start of Q3, but it failed. This has some experts worried about the next few months.
Bitcoin’s Price Action: A Crucial Range
Bitcoin ended June near its all-time high monthly close, around $107,140, after testing the $108,000 level. However, July started with a dip towards $105,000.
One analyst, Rekt Capital, sees this as a normal “post-breakout retest,” which could actually be good news for Bitcoin’s price. They previously pointed out that a weekly close above $104,400 was crucial for confirming a price recovery. This has now happened, potentially setting the stage for another upward move. They also noted that Bitcoin has broken out of short-term downtrends recently, but the key $108,000 level remains a strong resistance.
Another analyst, Sjuul from AltCryptoGems, agrees that the $108,000 rejection is significant. They emphasize the importance of Bitcoin holding the $104,000-$106,000 support level. A failure to hold this could trigger a much larger drop, potentially down to the $101,000-$102,000 range. They highlight a significant gap between the current support and this lower level.
Q3 Concerns: A Historically Slow Period & Warning Signals
Sjuul also points out that historically, Q3 isn’t great for Bitcoin, adding to the cautious outlook. Daan Crypto Trades echoes this sentiment, noting that Q3 is typically slower for Bitcoin and Ethereum due to reduced trading activity during the summer. They expect a choppy start to the quarter, advising investors to wait for clearer signals.
However, a more alarming note comes from analyst Ali Martinez. A technical indicator, the Tom Demark Sequential, has flashed a sell signal – something that has historically preceded major Bitcoin crashes. If history repeats, this could mean a drop to as low as $40,000.
The Bottom Line
Bitcoin is currently trading around $105,901. While some analysts see the recent price action as a positive retest, others are warning about the historically weak Q3 and a concerning technical indicator that suggests a potential massive drop. The coming weeks will be crucial in determining Bitcoin’s direction.
