Bitcoin sellers in ‘disbelief’ or at BTC price still wouldn’t be at $ 41,000

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Bitcoin (BTC) closed July above $ 41,000 in a “engulfing bullish” candle that significantly reverses its previous downtrend.

In an August 1 tweet, investor and entrepreneur Alistair Milne joined many celebrating a classic return to form for BTC price action.

Bitcoin refuses to tip down

After seeing three consecutive monthly red candles, BTC / USD held onto its late gains to post a monthly close that few had anticipated.

Despite the drop to $ 29,000, the bears failed to stay in control at the end of July as resistance levels fell and sentiment improved.

“Bullish engulf on Bitcoin’s monthly chart,” Milne summed up.

A bullish engulfing pattern is a graphic pattern that forms when a small red candle is followed by a large green candle i.e. July, the body of which completely covers or engulfs the body of the previous candle. (June).

1 month BTC / USD candle chart (Bitstamp). Source: TradingView

The build-up and its resistance have been so surprising that even seasoned hodlers seem confused as to what to do next.

On-chain data shows some long-term holders (LTHs) are in fact selling as BTC / USD rises, which analyst Lex Moskovski says is the ‘disbelief’ stage of a market cycle classic.

Moskovsky highlighted the long-term keeper-spent production profitability ratio indicator (LTH-SOPR), which hit its lowest levels in 2021 this weekend.

SOPR examines the value of parts moved over a period of time to get an idea of ​​the profitability of the parts sold. A downward trend towards neutral 1, explains host Glassnode, suggests that the profitability of the coins in question is low.

“Some long-term bitcoin holders are selling in this rebound with minimal profit, as indicated by LTH-SOPR hitting this year’s low for two consecutive days,” Moskovsky commented.

“That’s one of the reasons we’re still at 41k. Disbelief.” Bitcoin LTH-SOPR annotated chart. Source: Lex Moskovski / Twitter “Like clockwork”

Meanwhile, the bulls continue to look for triggers that could send BTC / USD past the $ 42,000 resistance for good, having seen two tests in the past 24 hours.

Related: Bitcoin’s ‘Supercycle’ Sets Fourth Quarter BTC Price Top As Illiquid Supply Reaches All-Time High

Beyond that, as Cointelegraph noted, there isn’t much to do until $ 45,000 and $ 47,000.

PlanB, the creator of the family of stock-flow pricing models, who described Bitcoin’s July close as a “like clockwork” recovery.

#bitcoin July closing price $ 41,490… rebounded from lows like clockwork pic.twitter.com/xZIlbaBBqI

PlanB (@ 100trillionUSD) August 1, 2021

Stock-to-flow, while currently demanding a Bitcoin price of nearly $ 100,000, remains valid, with PlanB giving a minimum August closing requirement of $ 47,000.

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