Bitcoin (BTC) continued to bounce from the $31,000 support during July 16, as new data reinforced the importance of current price levels.
No trip to $42,000?
There was then a late rise to near $32,000 as unconfirmed reports emerged that Bank of America had authorized bitcoin futures trading.
Market participants had conflicting opinions on the short-term outlook, with the popular trader Michaël van de Poppe pointing out on Thursday that the $31,000 was a kind of final borderline for Bitcoin – losing it and $29,000 or even $24,000 would logically be next.
His colleague Crypto Ed was also hesitant that day. At the beginning of the week, he had argued that Bitcoin could stage an unexpected bounce and reach its $42,000 range highs before reverting lower once again to challenge the $30,000 support.
“That BTC makes new lows invalidates the idea of the continuation of that bounce”, wrote in an update. Even a decline in the US Dollar Monetary Index (DXY), traditionally inversely correlated with e BTC, is unlikely to help the ups in any meaningful way, he added.
Update on this ⬆️
BTC making new lows is invalidating the idea of continuation of that bounce.
I still think DXY should see a pull back but it’s doubtfull that such will move BTC to 42k.
Maybe there’s no hidden play in the charts and BTC is just terribly weak and I was crazy pic.twitter.com/3nr65V9y4Z
– Crypto_Ed_NL (@Crypto_Ed_NL) July 16, 2021
meanwhile new data show that there has been considerable on-chain activity at current price levels.
According to the on-chain monitoring resource Glassnode, 9.93% of the Bitcoin offering moved between $31,000 and $34,300 – a clear area of interest for buyers and sellers.}
“This is now convincingly the largest volume group realized since $12k”, Said the company.
formerly Cointelegraph noted that the $30,000 itself forms an important level in the minds of small and large traders, whose behavior has gone from a “sell” mentality to a “buy” mentality in recent weeks.
Altcoins lose with unsyvorable sentiment
A look at altcoins highlights the lack of bullish sentiment in cryptocurrency markets as the week comes to an end.
Most of the top fifty tokens by market cap suffered more significant losses than the BTC/USD pair, which reached up to 12% amid an absence of price activation.
Ether (Eth), the main altcoin, was heading to a crucial support area of its own around $1,800. The start of a new period of accumulation was now “very likely, ” Van de Poppe said in a YouTube update on Thursday, before volatility re-entered.
Bitcoin’s growing dominance, which reached 46% on the day, added to the problems of altcoins.