hroughout July Bitcoin's price has stalled around the $70,000 price level. Having peaked marginally above this level briefly in late June, BTC still hangs on to test a closure over $70k which has failed multiple times when rebounding.
These rallies have been accompanied by lower highs. This is a sign that sellers are coming in every time bulls try to take the price up higher.
If this pattern continues, it raises concerns over what kind of sell pressure might be situated above support-turned-resistance and whether bears can maintain their strength.
Lower High Cycle Develops as Bulls Lack Momentum
TradingView data reveals Bitcoin has formed several lower highs at over $70k after reaching its ATH of $73,800 in mid-March.
As for each recoil in late June and July, the price has increased to a marginally lower value than the previous rally. This pattern has led popular traders to suggest that liquidity is hiding above $70,000 via stop-losses/liquidated short positions.
In order for the bulls to take back control, they need strong buy power pushing it through $70k and a higher high confirmed which will break this bear cycle.
Order Flow Signals Lack of Buyer Conviction
Other analysts have said that order flow data in reality does not show strong buying conviction behind Bitcoin's recent rallies. On-chain analyst Horse highlighted in a recent report that it might not have been spot price action but futures open interest fueling the late June break above $60k. This hints that traders did not put their money to work with the expectation of continued upside momentum.
Low buying participation around resistance raises the likelihood that we might see a successful defense of the $70k ceiling through a long squeeze. Any future runs will require stronger bull volume to make investors certain that this level can be surpassed.
Traders are watching closely for signs that bulls have enough purchasing power to overcome this barrier and spark the next leg higher. But for now, bears are maintaining their hold over the top cryptocurrency. Whether BTC can finally summon the momentum to break out past $70k may determine if its long-term trend remains intact.
