Bitcoin Surges 0.34% to $109,000 Despite Recent Volatility

On July 3rd, Bitcoin's price surged past the $109,000 mark, reflecting a 24-hour gain of 0.34%. This increase, though modest, underscores the cryptocurrency's resilience following a brief correction over the past two days. Bitcoin's price had fluctuated, dipping to a low of $105,406 early on Tuesday before swiftly recovering to surpass the $106,000 level. Despite this volatility, the overall market sentiment remained stable, with the Crypto Fear & Greed Index registering a "Greed" score of 63 out of 100, a slight decrease from the previous day.

Analysts have suggested that Bitcoin may attempt to retest its all-time high of $111,970. Market optimism on Monday, when BTC traded just below the $109,000 mark, indicated a potential move towards this high. However, selling pressure resurfaced, and analysts noted that the third quarter, historically a weaker phase for both Bitcoin and Ethereum, is approaching. Since 2013, Bitcoin has averaged a 5.47% gain in the third quarter. If this trend continues, Bitcoin could reach around $111,000 by September 30, nearing its all-time high.

The recent price movements of Bitcoin have shown signs of exhaustion after crossing $108,000 on Monday. The resistance level sits between $108,000 and $108,300, and despite attempts to push higher, Bitcoin has remained below this threshold. Analysts indicate that the rally may be losing momentum, with a bearish divergence forming. This divergence occurs when the price rises while the Relative Strength Index (RSI) weakens, serving as an early warning sign of buyer exhaustion. The significance of this divergence is amplified at or near key resistance levels, suggesting that bullish sentiment may be waning. The bearish divergence also implies that Bitcoin's recent rally might have been driven by short-term momentum rather than sustained buying interest.

Despite recent volatility, Bitcoin has demonstrated resilience, recovering from previous drops. The price of Bitcoin ended the weekend positively, rising almost 1% on Sunday to cross $108,000 and settle at $108,350. However, the week began on a cautious note due to the impending tariff deadline, leading to a 1.09% drop on Monday and a 1.33% decline on Tuesday to $105,742. Bitcoin then rebounded during the ongoing session, trading around $107,732 with a nearly 2% increase. Unless Bitcoin surpasses the resistance between $108,000 and $108,300, the price action will maintain a bearish bias. Confirmation of this bearish sentiment could see the price drop to $100,000.