Bitcoin seeks confirmation of key support, analysts warn of "calm before the storm".

Bitcoin (BTC) is attempting to turn two key resistance levels into support after reaching a historic high weekly closing price, laying the groundwork for a new high. Some analysts believe that the crypto assets market may be in a "calm before the storm" phase.

Bitcoin Seeks Key Support Level Confirmation

• In the past few days, Bitcoin successfully closed above two key resistance levels, setting a record high weekly closing price (approximately $109,200).
• Last week, BTC laid the groundwork to retake the final major weekly resistance level around $109,000 area four days after approaching it.
• Last Sunday, BTC strongly broke through the key resistance level, closing around $109,200 for the week, and successfully confirmed its daily upward trend line has turned into a support level.
• Currently, Bitcoin is undergoing retest confirmation after a breakout, aiming to turn this resistance level into a support level.

Renowned analyst Rekt Capital emphasized that the goal is to convert this resistance into support, which will drive BTC towards new all-time highs (ATH). He pointed out: "Given that the price barely closed above the final weekly resistance level, this makes it highly unlikely that the price will cleanly and decisively retest this level as support; in other words, this retest process is likely to be very volatile."

Nevertheless, the analyst pointed out that there is strong high time frame (HTF) support below BTC, which "should act as a demand zone and drive the price into a second round of price discovery uptrend in the future."

It is worth noting that:

• The Bitcoin price range (re-accumulation range) high area (about $104,400) has been successfully reclaimed and confirmed as support over the past two weeks.
• June monthly K-line Closing Price successfully stood above 102,464 USD and after the breakout, it performed a pullback confirmation, "which contributed to the current July's rising K-line", making it the monthly support level.
• In addition, $107,244 emerged as a key area after last month's closing price, pushing BTC into the current 'retesting phase.'

Will a Breakthrough Come After Summer? Analysts Say We Are in the "Calm Before the Storm"

Rekt Capital views the current phase of BTC as the "calm before the storm." He stated, "As long as the confirmation process of the pullback after the breakout continues, Bitcoin will continue to prepare for the initiation of the second round of price discovery upward trend." However, he also pointed out that as of this month, the BTC price is still fluctuating within the range of $104,400 to $111,000.

Trader Daan Crypto Trades reminds investors that the price trend of BTC in the coming days is crucial for this month. He points out that historically, Bitcoin establishes its monthly high and low within the first 12 days of each month over 80% of the time, after which the price often fluctuates about 20% in the opposite direction.

It is worth noting that June was an exception, when the Bitcoin price was relatively stable and the fluctuations were small. Now, the analyst believes that we need to "closely monitor whether there will be a significant increase or decrease in the past 12 days" as this could determine the overall trend of BTC for the rest of this month (monthly trend).

"Currently, there hasn't been a significant market movement in July," Daan stated, but he added, "From a technical perspective, the current price area performs perfectly." He believes that considering the trading pace in summer is usually slow, BTC may oscillate within the current range until the real upward trend starts at the end of the third quarter or the beginning of the fourth quarter.

He summarized that Crypto Assets must effectively break through the current fluctuation range, for investors to have reason to expect higher prices later this year.