Bitcoin traders express mixed emotions over next step in BTC price

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The rumor that Amazon would accept cryptocurrency payments sparked a wave of bullish enthusiasm in the crypto market earlier in the week, but now that sentiment has started to fade as bulls Bitcoin (BTC ) face strong resistance at the $ 40,000 level.

Data from Cointelegraph Markets Pro and TradingView shows the bears were successful in repelling several attempts to reverse the $ 40,000 level to support and the defense of this area continued on July 29 as stagnant price action from Bitcoin and added to concerns that the price could fall back to the last range of $ 35,000 to $ 30,000 per week.

1 day BTC / USDT chart. Source: TradingView

Here’s what analysts and investors are saying about recent Bitcoin price developments.

21-week EMA marks the border between a bullish and bearish market

Bitcoin’s rapid rise from $ 31,000 to $ 40,925 pushed the price up close to its 21-week exponential moving average, a level widely seen as a bull market indicator according to pseudonymous Twitter analyst Rekt Capital.

21 Week EMA Widely Seen As An Indicator Of The #BTC Bull Market

When $ BTC is above – BTC is believed to be in a bull market

When the price is lower than this – BTC is believed to be in a bear market

BTC now struggles to break through beyond 21 week EMA (green) #Bitcoin #Crypto pic.twitter.com/rMqeWzJS4i

Rekt Capital (@rektcapital) July 28, 2021

As seen in the tweet above, the 21-week EMA is currently near the $ 40,000 price point, effectively becoming the line in the sand that separates the bulls and the bears.

One of the responses to the above tweet cautions overly bullish traders as similar moves in the past have been followed by lower lows and an extension of bearish market conditions.

6 day BTC / USD chart. Source: Twitter

As shown by the yellow circles in the chart above, previous instances of the price breaking above the 21-week EMA resulted in a reversal which leads to a retest of the lowest lows over the weeks and of the following months.

Bitcoin whales remain greedy while others are fearful

One group of market players who have shown little evidence of indecision are the Bitcoin Whales, who have adopted Warren Buffett’s mantra of being afraid when others are greedy and greedy when others are afraid, by buying BTC at low price as weaker hands retreat. .

The #Bitcoin whales have remained busy and addresses holding between $ 100 and $ 10,000 BTC have just reached a #AllTimeHigh coin total of 9.19 million held. They added another $ 170,000 BTC since May 22nd and $ 130,000 BTC in the last 4 weeks alone. https://t.co/qv5IbYXgGQ pic.twitter.com/PwrmUyz9Of

Santiment (@santimentfeed) July 29, 2021

According to data from Santiment, a behavioral and on-chain analysis platform, whale wallets have accumulated 130,000 BTC over the past four weeks, with the price of Bitcoin trading below $ 35,000.

With such a large build-up in the lower $ 30,000 to $ 35,000 range, some analysts have suggested that the whales may attempt to orchestrate a further drop in prices so they can continue to pile up.

Related: Bitcoin Bulls Control Friday’s $ 1.7 Billion Monthly Options Expiration

Long-term cycles offer hope

When short-term confusion prevails, it is sometimes best to take a step back to get a full picture of the market situation and the possibilities for the future.

According to Inmortal UP ONLY, a pseudonymous Twitter user, Bitcoin’s four-year cycle is currently around 65% through its bull market phase and the trader is predicting a high at $ 150,000, which will be followed by a correction. at $ 32,000.

Bitcoin price in four-year cycles. Source: Twitter

For traders and holders who prefer to operate over a longer period of time, there is still a lot to be optimistic about the future and experienced market participants know that the price movements seen over the past few months are an integral part of the normal progression. of Bitcoin.

Further confirmation of the long-term perspective was offered by Ecoinometrics, which compared the current price action after Bitcoin’s halving to the performance of the previous two halves.

#Bitcoin after the HalvingJul. 29, 2021

443 days after 3rd halving # BTC to $ 39,973

Catching up on the growth trajectory of the previous cycle will take a lot of juice.

But we can hope that this movement is the start of a new stage.

So far, so good. pic.twitter.com/a12RYAhlsn

ecoinometrics (@ecoinometrics) July 29, 2021

As noted above, the current price of BTC is well below the average growth of previous cycles, indicating that BTC has some catching up to do if it hits a similar trajectory and hits a new all-time high above 100,000. $.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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