BTC failed to hold support at the $30,000 mark and the 21-day moving average after initially surging past these points earlier in the day.
According to analyst Michaël van de Poppe, Bitcoin rejecting these areas indicates the potential for the market to retest recent lows again amid ongoing volatility. With the bulls unable to maintain control above $30k, the bears may gain strength and bring BTC back toward its range bottom in the near term.
Also, as per trader Daan Crypto Trades, Bitcoin’s volatility could increase again with rising open interest in the market. So far, BTC’s bounce off the recent lows hasn’t been very forceful. The lower timeframes remain extremely choppy and the key levels to watch are $30.5K and $29.5K in the short term.
On-chain data firm Material Indicators noted Bitcoin faced solid rejection at the 21-day moving average, signaling temporary weakness. More sell orders stacking up at $31k may imply the market is getting overextended currently after the recent bounce.
Bulls need to regroup and gain momentum to have a real chance of pushing past the resistance levels. A look at the Binance order book showed limited buying demand right below $30k, underscoring the precarious chart setup for BTC.
On July 20, positive tech earnings and a decline in U.S. jobless claims data boosted the U.S. dollar. The dollar index (DXY) rose close to 101, hitting its highest level in several days.
As trader Skew explained, the jobless claims numbers came in lower than expected, indicating a slower pace of layoffs. This better-than-forecast labor market data helped strengthen the U.S. dollar.
