Bitcoin price clings to $20K as Bollinger bands close in for volatility

cointelegraph.com:

Bitcoin (BTC) said “no” to volatility for a third day on July 7 as Wall Street trading began with little change in mood.

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it fluctuated just north of $20,000, retaining a pattern characteristic of the week so far.

The pair stayed well within a defined range overnight, leading analysts to assume that a break up or down was next as a short-term prospect.

“Bitcoin strong consolidation at $20k, this can't go on forever, triangle primed to break to upside or downside. But RSI bullish divergence tho,” Venturefounder, a contributor to on-chain analytics platform CryptoQuant, told Twitter followers July 6.

Bullish signals on Bitcoin’s relative strength index (RSI) referred to be Venturefounder often precede BTC price followthrough, making the current RSI chart a key reference point on low timeframes.

Confirming the likelihood for volatility to return, meanwhile, Bollinger bands on the daily chart stayed narrow — a classic prelude to a trend taking shape.

Regarding what direction that trend could take, all bets remained off on the day as caution summarized sentiment.

“Still not convinced with this type of price action,” crypto trader Ninja commented.

Ninja additionally noted that short interest was building on exchange platform Bybit on the day, advising a hands-off approach until those positions unwound.

On macro markets, the U.S. opened to modest gains, with the S&P 500 and Nasdaq Composite Index up 1% and 1.3% respectively within the first 30 minutes.

Related: Bitcoin bulls may have to wait until 2024 for next BTC price ‘rocket stage’

A week before May’s Consumer Price Index (CPI) data release, markets remained free of turbulence over inflation signals, in turn