After achieving the highest weekly close to date, Bitcoin (BTC) is now trying to confirm two important levels as support before continuing to rise to new highs. Some analysts suggest that this cryptocurrency may be experiencing a "calm before the storm" phase.

Bitcoin Set to Confirm Major Support

Bitcoin has closed above two important levels in recent days, recording the highest weekly close in history. Last week, the leading cryptocurrency positioned itself to reclaim the last major weekly resistance around $109,000 after being near this level for four days.

On Sunday, BTC surged above the major resistance level and closed the week around $109,200, also successfully confirming its daily diagonal trendline as support. Now, the cryptocurrency is retesting the final resistance level to confirm the breakout.

Rekt Capital asserts that the goal is to turn this resistance level into support, as it could push BTC to a new all-time high (ATH). He explains that "with the weekly closing price just slightly above the last weekly resistance, the likelihood of the price retesting this level as support is very low; meaning, this retest is likely to be very volatile."

However, the analyst notes that this cryptocurrency has significant High Time Frame (HTF) support below, "which will serve as a demand area to drive the price into the price discovery uptrend 2 over time."

Notably, Bitcoin has reclaimed and maintained the high area of its re-accumulation range, around $104,400, serving as support for the past two weeks. Meanwhile, June Monthly Closed above $102,464 and retesting after the breakout "to create the current bullish July candle," establishing it as a monthly support level. Additionally, the level of $107,244 has also emerged as an important area after closing last month, bringing BTC "back to the retest phase."

Will BTC Break Out After Summer?

Rekt Capital states that the current phase of BTC is the "calm before the storm," adding that "as long as the retest after the breakout continues, Bitcoin will continue to be positioned for the second price discovery uptrend." However, he points out that the price is currently locked between $104,400 and $111,000 this month.

Daan Crypto Trader warns investors that the upcoming days could be very significant for the price movement of BTC this month. He emphasizes that Bitcoin tends to establish monthly highs or lows within the first 12 days over 80% of the time, before the price tends to revert about 20%.

Notably, June was an exception after Bitcoin remained relatively stable with only minor movements in either direction. Now, the analyst believes it is time to "keep an eye on any major moves up or down in the first 12 days" to potentially determine the trend of BTC for the remainder of the month.

“Currently, there hasn’t been much movement in July,” Daan stated, but added that “technically, we are still looking perfectly” around the current levels. He asserts that, with slower momentum in the summer, BTC may remain within the current range until a real upward move begins at the end of Q3 and early Q4.

The trader concludes that the cryptocurrency must officially break out of its range before investors get excited about "much higher prices by the end of the year." At the time of writing, Bitcoin is trading at $107,973, down 1% in the daily timeframe.