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Bitcoin will need several attempts, but resistance should ultimately fall to bulls, however, a healthy consolidation is also required, market participants explain.
Image courtesy of CoinTelegraph
JULY 27, 2021
Bitcoin (BTC) traded steadily on Tuesday after a surge above $40,000 resulted in higher levels broadly holding.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView (Click image for larger view)
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering near $37,000, around 8.8% below the peak of Monday’s gains.
Its first trip above $40,000 in six weeks, Bitcoin price action is now attempting to consolidate and form support at a higher low, Cointelegraph contributor Michaël van de Poppe said.
“Bitcoin rejects at the range high, which isn't strange,” he explained in a Twitter update Tuesday.
“The market has made a new higher high and is in search of a higher low. The levels that I’m watching are $34,500–35,800 and the area around $32,500.”
A look at buy and sell levels on major exchange Binance confirmed the significance of those price points, with buyer support significantly in evidence only below $36,000. Sellers, on the other hand, remained clustered at $40,000 and above.
BTC/USD buy and sell levels (Binance) as of July 27. Source: Material Indicators/Twitter (Click image for larger view)
The area immediately after $40,000 remains a decisive hurdle to overcome for Bitcoin bulls, with analysts arguing that doing so would unleash the bull market continuation that so many continue to wait for.
“Did people really expect 45-48k in one day?” popular trader Pentoshi reasoned.
“You broke the downtrend on high volume, you broke back into the range and made a HH on the daily. You teleported to resistance, it could take 2 or 3x to break it but that’s coming in the next weeks imo. Dips are for buying.”
That scenario would place BTC/USD on track to reach $47,000 in August, the minimum — if controversial — monthly close predicted by stock-to-flow model creator PlanB.
Bitcoin’s comedown from local highs, meanwhile, spelled problems for altcoins.
Related: Price analysis 7/26: BTC, ETH, BNB, ADA, XRP, DOGE, DOT, UNI, BCH, LTC
Ether (ETH), the largest altcoin by market capitalization, dipped 11% following a copycat move to highs of its own at $2,432 on Bitstamp.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView (Click image for larger view)
Many major altcoins fared likewise, with 24-hour losses of 10% or more not uncommon at the time of writing.
“The great part is that altcoins are following suit with Bitcoin and will most likely run towards their other side of the range too,” van de Poppe nonetheless added in a hopeful forecast, repeating previous conviction about the altcoin market.
“This means 80–150% run from the lows. I think most of them are bottomed.”
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Original article posted on the CoinTelegraph.com site, by William Suberg.
Article re-posted on Markethive by Jeffrey Sloe
