Bitcoin (BTC) failed to hold above $30,000 after the July 20 open on Wall Street, with one analyst predicting a return to a range low.
BTC price drops 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 high of the day for Bitcoin, with the market then retracing its intraday progress completely.
Reacting to the market action, Michaël van de Poppe, founder and CEO of trading firm Eight, warned that lower levels could come later.
“Without breaking the decisive area, it looks like we’re going to have another low for Bitcoin,” he told his Twitter followers.
Popular trader Daan Crypto Trades added that volatility could return thanks to rising open interest.
Open Interest increases sharply near these levels.
Probably more volatility ahead for #Bitcoin.
Stay safe pic.twitter.com/GqUnaH20Ha
– Daan Crypto Trades (@DaanCrypto) July 20, 2023
“#Bitcoin found support at the bottom of the range and 4H 200MA/EMA,” he continued in an additional tweet about the four-hour 200-period moving average and exponential moving average.
“So far, the rebound has not been very convincing and the lower time frames are extremely worrying. $30.5K and $29.5K remain my levels of interest in the short term.”
On-chain monitoring resource Material Indicators meanwhile noted the significance of the 21-day SMA, suggesting that a temporary peak may be in BTC/USD.
“A tough rejection of technical resistance at the 21-Day Moving Average and more bids stacking up at $31k could indicate that things are getting better for the time being,” part of the July 20 analysis. to read.
“Bulls need to regroup here and rally the herd if they want a legitimate chance to get past those sales walls.”
Binance BTC/USD order book preprint showed lack of supply liquidity just below the $30,000 mark.
Labor market data strengthens US dollar
Macroeconomic events on July 20, meanwhile, focused on strong tech earnings along with a slowdown in US jobless claims.
Related: Bitcoin traders say ‘get ready’ as BTC price prepares for 2023 bull market
The impact on the US dollar was pronounced, with the US Dollar Index (DXY) gaining ground to near 101 for the first time in several days.
“So today, Initial Jobless Claims were less than previous and expected, so the trajectory expected for increasing layoffs is slower (lower is good for USD),” popular trader Skew wrote in part of an answer.
Cointelegraph previously wrote about the changing dynamics between BTC price performance and DXY strength.
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