Bitcoin (BTC) failed to hold above $30,000 after Wall Street opened on July 20, with one analyst predicting a return to range lows.

BTC/USD 1-hour chart. Source: TradingView

BTC Price Drops Below $30,000

Data from Cointelegraph Markets Pro and transaction view Weak BTC price action is being tracked after a rejection at the 21-day simple moving average (SMA).

The SMA at $30,400 provided Bitcoin with a high for the day before the market completely retraced its intraday move.

BTC/USD 1-day chart with 21-day SMA. Source: TradingView

In response to market movements, Trading Eight founder and CEO Michaël van de Poppe warned that lower levels are likely to follow.

“Bitcoin looks set to sweep the lows again if it doesn’t break out of key areas,” he said Tell his twitter followers.

BTC/USD annotated chart.Source: Michael van der Pope/Twitter

Popular trader Daan Crypto Trades added that volatility could return due to rising open interest.

“#Bitcoin has been finding support at the bottom of the range and 4hr 200MA/EMA,” he said continue In another tweet about the 4-hour 200-period moving average and the exponential moving average.

“The bounce has not been very convincing so far, and the lower time frames are extremely volatile. In the short term, $30,500 and $29,500 remain levels of interest for me.”

BTC/USD annotated chart. Source: Daan Crypto Trades/Twitter

Meanwhile, on-chain monitoring resource Material Indicators pointed to the importance of the 21-day moving average, suggesting that BTC/USD may be seeing a temporary peak.

Part of the July 20 analysis: “A strong rejection of technical resistance at the 21-day moving average and more asking prices piling up at $31,000 could be a sign that things are getting really bad right now.” read.

“If the bulls are going to have a legitimate chance of breaking through those sell walls, they need to regroup here and gather the herd.”

Previously printed Binance BTC/USD order book show There is a lack of bidding liquidity below the $30,000 mark.

BTC/USD order book data for Binance. Source: Material Indicators/Twitter

Labor market data boosts dollar

Meanwhile, macroeconomic events on July 20 focused on strong tech earnings and a slowdown in U.S. jobless claims.

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The impact on the greenback was clear, with the U.S. dollar index (DXY) trading near 101 for the first time in days.

“As a result, initial jobless claims today are lower than previously and forecasted, so the expected trajectory of layoffs increases is slower (lower for the dollar),” popular trader Skew wrote as part of the response.

A 1-day chart of the U.S. dollar index. Source: TradingView

Cointelegraph has previously written about the dynamic between BTC price performance and DXY strength.

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This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.