Bitcoin Indicators Point to Possible Inevitable Break Above $40K Resistance
28 Juillet 2021 - 8:00PM
NEWSBTC
Bitcoin has been rejected several times after a push north of the
$40,000 mark. At the time of writing, BTC trades at $36,621 with a
3.2% profit in the daily and a 31.9% in the weekly chart. The
sentiment is growing bullish, as Bitcoin continues to tackle the
important resistance at key levels. In addition, data from
CryptoQuant points towards bullish indicators. Despite an increase
in BTC inflows to exchange platforms, most of the selling seems to
be absorbed by strong buyers. As a consequence, the Bitcoin spot
reserves on exchanges are on a downtrend, as the chart below shows.
CryptoQuant claims that this is the “highest outflow level” since
Bitcoin has been testing the lows of its current range, around
$29,000, and the high levels at $40,000. Therefore, it is possible
to assume that BTC’s price could find enough support for a fresh
leg-up into previous highs. On the first pullback after breaking
through $30,000 earlier in the year, there was the same peak in
outflow volume on the exchanges. We need to see as price breaks new
resistance up to the last historial top (…) This data also suggests
that the price could reclaim the previous high without “great
demand”, CryptoQuant said. There were similar BTC outflows in
mid-July, but the report attributed it to an internal transaction.
The recent spike is even higher than the previous outflow
indicating Clearly big players capitulating to liquidity from the
bears who were betting on a break of support at $30,000. Bitcoin To
See $50,000 In The Coming Weeks? A separate report by QCP Capital
highlighted that the recent bullish price action occurred despite
e-commerce giant Amazon denied the rumors on their alleged crypto
payments program. In addition to the high BTC outflows, there has
been a spike of flow in the options market. This spike was recorded
during the days before the big rally that took BTC from the low
$30,000 to its current levels. As QCP Capital said, there was a
wave of call buying with over 2,000 BTC place at 42,000 and 44,000
strikes with 3-week expiries. In other words, some investors could
be betting on more appreciation for the coming weeks. This could be
additional fuel for Bitcoin to break out from its current pattern.
QCP Capital added: However, the vol market reacted quite
differently this time round with signs of stress to the topside.
Unlike the previous rally which only saw front end vols spike while
the back-end remained stable, this time back-end vols moved higher
tandem with the spike in front-end vols. For the short term, the
firm predicts more resistance in the current levels with a
potential TD 9 sell signal for July 29th. During the weekend, the
end of the month options expiring could push Bitcoin to the $40,000
and $42,000. If this is the case, QCP Capital expects these levels
to hold with a potential extension to the $50,000.
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