Following the Fourth of July holiday in the United States, Bitcoin traders were split on the opinion as to whether the first major rally of 2018 had arrived in earnest. Traders who favor technical analysis had high hopes that Bitcoin would reach the psychological mark of $7,000; however, market forces held the digital currency from going past $6,785.
Traders who follow fundamental analysis are noticing that volatility has been considerably reduced in the cryptocurrency markets, which supports the idea of Bitcoin being in rally mode. Even though the digital currency markets are still a long way from being called stable, the chances of Bitcoin dipping below $5,000 or reaching $9,000 in just a few weeks are not as likely as they were in 2017.
Unless the price of Bitcoin spikes past $6,750, technical traders are not likely to take long positions, and the same goes for futures traders in Chicago. Once this cryptocurrency gets closer to $6,800, traders will feel more confident that it will quickly move towards $7,000.
Going back to the rally question, with trading ranges valued at $400 and higher, it will be difficult to determine what a Bitcoin rally should look like in 2018. As of July 6, traders were still trying to figure out a breakout price. The only consensus that has emerged in July is related to the lower range of $6,340, which for many traders would signal that the rally has effectively fizzled. Other traders believe that the month of July will see Bitcoin stuck in a sideways market around $6,500.