- July 16, 2021
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Little change on Bitcoin markets as sideways trading continues and a clear bear trend is yet to enter decisively.
Bitcoin (BTC) continued to bounce off $31,000 support during Friday as fresh data reinforced the importance of current price levels.
No trip to $42,000?
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD repeatedly testing but, so far, not breaking through $31,000 on Friday.
A late surge to near $32,000 then entered as unconfirmed reports surfaced that Bank of America had given the go-ahead for Bitcoin futures trading.
Market participants held mixed opinions about the short-term outlook, with popular trader Michaël van de Poppe noting on Thursday that $31,000 was something of a final frontier for Bitcoin — lose it, and $29,000 or even $24,000 would logically be next.
Fellow trader Crypto Ed also appeared undecided on the day. Earlier in the week, he had argued that Bitcoin could stage a shock rebound and hit its range highs of $42,000 before reversing downward yet again to challenge $30,000 support.
“BTC making new lows is invalidating the idea of continuation of that bounce,” he wrote in an update. Even a comedown for the United States dollar currency index (DXY), traditionally inversely correlated with BTC, is unlikely to help bulls significantly, 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 showed considerable on-chain activity having occurred at current price levels.
According to on-chain monitoring resource Glassnode, 9.93% of the Bitcoin supply moved between $31,000 and $34,300 — a clear zone of interest for both buyers and sellers.
“This is now convincingly the largest realised volume cluster since $12k,” the firm commented.
Previously, Cointelegraph noted that $30,000 itself forms an important level in the minds of both small and large traders, whose behavior has flipped from a “sell” to a “buy” mentality in recent weeks.
Altcoins lose out on middling sentiment
A look at altcoins, meanwhile, underscored the lack of bullish sentiment across cryptocurrency markets as the week came to a close.
Most of the top 50 tokens by market capitalization saw heavier losses than BTC/USD, these reaching up to 12% amid an absence of price triggers.
Ether (ETH), the largest altcoin, was heading to a crucial support zone of its own around $1,800. The start of a new accumulation period was now “very likely,” van de Poppe said in a YouTube update on Thursday prior to volatility reentering.
Bitcoin’s rising dominance, hitting 46% on the day, added to altcoins’ woes.
