July opened on a positive note but was followed by a quick sell-off. The reduced volatility typical of summer is evident. However, pivotal catalysts this month could determine the trajectory of Bitcoin, which has consistently shown precision in retesting the $60,000 demand level.

Will Bitcoin break out this month, or does it need more time for consolidation?

Twelve-hour time frame analysis

BTCUSD - 12 Hour Time Frame

Bitcoin dipped below the crucial $60,000 level after failing to reach the last swing high, which led to high-volume selling down to $58,550. Currently, it is trying to hold the marked swing low/range low.

If the price doesn’t linger here, it indicates strong demand. Bitcoin needs to maintain this swing low; otherwise, it might fill some unfilled gaps, possibly down to $56,000.

Hourly time frame analysis

BTCUSD - 1 Hour Time Frame

On the 1-hour timeframe, Bitcoin has perfectly filled a gap with a strong reaction. As a large asset, Bitcoin tends to be distributed efficiently, often precisely testing previous inefficiencies.

Another inefficiency was created as the price moved through the yellow area, representing a range with high volume in recent days. As the price fell, many investors closed their positions, possibly at breakeven, causing a quick price drop and leaving an inefficiency likely to be filled.

This would return the price to the yellow range for further accumulation, creating a strong breakout possibility.