Bitcoin Still Struggling To Maintain Uptrend

Mohammed Abdelkhalik
July 1, 2021

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Bitcoin Price Outlook – 1st July 2021

Bitcoin has been doing well over the past few days, as it managed to recover more than $6000 from its value, recording its highest level in almost 12 days, surpassing the $36,500 level during trading yesterday, Wednesday, after it suffered a violent shock last weekend, but it lost Today it is around $3000 and it is currently trading above the $33,000 level.

The leading cryptocurrency was hit hard at the end of last week, due to the increasing crackdown on bitcoin miners in China, and despite the opinions of analysts who expected further price weakness, the most popular cryptocurrency surged more than 15% over the weekend. With the bullish momentum continuing this week.

Worst Quarterly Performance of Bitcoin

After dropping more than 40% against the dollar in the past three months, Q2 2021 became Bitcoin’s worst quarter since Q4 2018, signaling the end of the previous bear market, and its third-worst quarter since 2014.

BTCUSD daily chart - 1st July 2021

The leading cryptocurrency lost more than 40% of its value in the second quarter of the year, despite rising to an all-time high of $65,000 in mid-April, and despite the heavy losses, it is still up about 20% so far.

The second quarter of 2021, which opened at $58,789 (April 1), ended at $35037 (June 30), down by about 40.5%. In the same quarter at $28,600 just 8 days ago.

As reported earlier this year, the second quarter has historically been one of the best quarters for Bitcoin with an average ROI of 60%. This year the situation looked more upbeat with the coin entering April after the best performance of the first quarter.

And it all started well, in the first few weeks of April the currency continued a bullish trend that culminated in the middle of the month (April 14) when the asset peaked at nearly $65,000 to hit an all-time high.

But then everything changed as Bitcoin rebounded several thousand dollars and fell below $60,000, and numerous reports emerged indicating declining institutional interest, which has been the driving force of the rally so far.

The scene worsened in mid-May as electric car giant Tesla suspended bitcoin payments for its products citing environmental issues.

Optimism despite the collapse

After the massive crash that occurred in May, Bitcoin price action failed to recover lost gains, staying below all-time highs by more than 50%.

However, given the changes that can occur in digital currency in a matter of months, there is little reason to worry about disrupting the flow of funds.

Price volatility only reinforces the idea that volatility is an essential part of an emerging and expanding market, investors are still buying dips, as well as other altcoins, because they are confident that the blockchain technology powering cryptocurrencies will be around for the long term.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.