Bitcoin and the cryptocurrency market remain under pressure as the sector enters a low volatility phase. While many traders expected a significant move yesterday following the Federal Reserve's rate cut decision, the cryptocurrency has maintained its current level.
Despite the relative resilience of the leading cryptocurrency and other altcoins, Bitcoin's price is showing signs of potential decline. At the time of writing, BTC trades at around $105,000 with a 2.3% decrease over the past week.
Bitcoin Price Remains Steady, But Will It Last?
Crypto analyst Daan has shared insights on the current Bitcoin price action. The analyst believes BTC has been compressed in recent weeks. In that sense, many traders are anticipating a surge in volatility.
As the image below shows, Bitcoin has traded within a narrow range with a monthly high of $110,600 and a monthly low of around $100,000. Within this range, there are two key levels to watch: the area between $109,000 and $103,000.
A breakout or breakdown from this range could signal a return of volatility to the Bitcoin price action. Therefore, the cryptocurrency may reclaim or revert to one of the previously mentioned levels on higher time frames.
The analyst stated as follows:
BTC is still hovering around the $105K area, sitting in the monthly range and right at the monthly opening level. The price has been compressed and it is clear that the market is waiting for a significant move to occur. Statistics still strongly support a subsequent shift this week and especially this month. So, keep an eye on these levels and play accordingly.
Bitcoin's Seasonal Behavior May Shock Traders
In a separate report, trading company QCP Capital stated that Bitcoin's price could be affected by 'summer blues.' In other words, the company anticipates volatility will decrease as institutions and traders leave the market in July and August.
QCP Capital claims there are signs that this stagnation is affecting the market, including BTC's implied volatility. This index is currently below 40%. Additionally, with the Fed holding a hawkish view, the exchange predicts that price action will be bleaker in the coming weeks and there is caution among operators:
(…) The Fed kept interest rates unchanged. However, their stance remains hawkish. Inflation expectations are still high, with tariffs seen as a primary risk for price increases. The Fed prefers to 'wait and see' until there is more clarity on the inflation trajectory. While some macro watchers expect weaker economic and labor data to eventually push the Fed towards a dovish stance, current metrics indicate the opposite.