Source: PaxForex Premium Analytics Portal, Fundamental Insight

With Bitcoin’s average true range (ATR) hovering just above 2020 lows, trading volumes collapses by almost 50% in June. The low volatility environment is expected to compress volume further, exposing BTC/USD to volatile price action moving forward. On the bright side, a new report suggests that in less than eight years, retail demand will outstrip supply, which would pressure prices higher. With the long-term outlook bullish, near-term selling could create new buying opportunities.

The BTC/USD forecast remains bearish over the next few trading sessions. Price action is breaking into the Ichimoku Kinko Hyo Cloud, and the Kijun-sen is pressing this cryptocurrency to the downside. A breakdown below the Tenkan-sen can invite more sellers in this low-volume trading environment, resulting in a drive into its next horizontal support area. Are bears preparing for an attack? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the BTC/USD remain inside the or breakdown below the 9,120 to 9,435 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 9,250
• Take Profit Zone: 7,155 – 7,710
• Stop Loss Level: 9,760

Should price action for the BTC/USD breakout above 9,435 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 9,760
• Take Profit Zone: 10,300 – 10,465
• Stop Loss Level: 9,435

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