Bitcoin price returns to ‘critical’ pivot zone as $ 33,000 remains unchanged

[ad_1]

Bitcoin (BTC) failed to unlock $ 33,000 on July 14, as a rebound from multi-day lows allowed only modest progress.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewBTC Price: Fits and Starts Below $ 33,000

Data from Cointelegraph Markets Pro and TradingView followed another day of variation, but with increased volatility for BTC / USD on Wednesday.

The pair briefly touched $ 31,750 overnight before a strong rebound hit highs of $ 32,970. This meant that $ 33,000, once strong support, was still out of reach.

For popular trader Michal van de Poppe, this area starting at $ 32,600 was ‘critical to cross’ for Bitcoin to have a chance of hitting higher targets in its trading range.

“A lot of altcoins are doing double-bottom testing. Awesome,” he added in his latest Twitter update.

At the time of writing, Bitcoin has surrounded $ 32,800 following repeated attempts to decipher $ 33,000. The buy and sell levels on Binance have shown support firmly in place at $ 30,000, with a resistance band at $ 33,000 that nonetheless slowly fades away.

BTC / USD (Binance) buy and sell levels as of July 14. Source: Material Indicators / Twitter Strong hands quietly collect cash

Expectations were high the day before a high-profile “Bitcoin bill” was presented to the government of Paraguay. Although information on the legislation has been sketchy, optimists are hopeful that the country will seek to follow El Salvador and make Bitcoin legal tender.

Beyond network fundamentals, there wasn’t much else for the bulls to tap into at the time of writing, with the build-up by investors big and small not yet showing in the action of the bulls. price.

Related: Great buy? Bitcoin is trading at a record 59% below the BTC stock-flow price model target

In a new analysis, however, William Clemente suggested that there might be a “lag” in the price response.

“Vice versa. Price can sometimes lag behind accumulation flows. For example, in January or September 2020, we had a bullish split, not this size though,” he said in comments. Twitter.

“Also note: we had one in March 2020, but macro forces can obviously prevail.” Annotated graph of Bitcoin cash supply ratio. Source: William Clemente / Twitter

Clemente highlighted a graph of Bitcoin’s cash supply ratio (LSR), a metric now signaling the movement of BTC to those with little history of selling.

“Nothing has changed, the supply shock is still in play,” he said, referring to the halving of global grants last year.

“LSR shows that the action of Bitcoins reabsorbed by strong hands only diverges further from the price. Trade has also fallen by -21,829 BTC over the past 2 weeks; a clear trend of these flows accumulating as well. ”

[ad_2]