Bitcoin indicator points to break the $40,000 resistance level

Bitcoin has been rejected many times after breaking the $40,000 mark. At the time of writing, BTC is trading at $36,621, with a daily profit of 3.2% and a weekly chart of 31.9%.

BTC rebounded strongly on the daily chart. source: BTCUSD transaction view

Sentiment is getting more and more bullish because Bitcoin continues to deal with important resistance at key levelsIn addition, data from CryptoQuant integral Bullish indicator.

Although the inflow of BTC to trading platforms has increased, most of the selling seems to have been absorbed by powerful buyers. Therefore, the exchange’s Bitcoin spot reserves are in a downward trend, as shown in the figure below.

Source: CryptoQuant

CryptoQuant claims this is the “highest outflow level” since Bitcoin has been testing the lows of its current range (approximately $29,000) and the highs of $40,000. Therefore, it can be assumed that the price of BTC can find enough support to rise again to the previous high.

In the first callback after breaking through $30,000 earlier this year, the exchange’s outflow also experienced the same peak. We need to see the price break through the new resistance to the last historical top (…)

CryptoQuant said that the data also shows that in the absence of “huge demand”, prices may rise to previous highs.Have similar BTC flowed out in mid-July, but the report attributed it to internal transactions. The recent peak is even higher than the previous outflow, indicating

Obviously, the big players are surrendering to short liquidity, and they are betting on the break of the $30,000 support level.

Source: CryptoQuant

Bitcoin will see $50,000 in the next few weeks?

Another report by QCP Capital emphasized that although e-commerce giant Amazon has denied rumors about its so-called encrypted payment plan, there has been a bullish price trend recently. In addition to the massive outflow of BTC, the flow of the options market has also surged.

This A peak was recorded in the days before the surge that took BTC from a low of $30,000 to its current levelAs QCP Capital said, there were more than 2,000 BTC positions at 42,000 and 44,000 strikes, and there was a wave of bullish buying at the expiration of 3 weeks.

In other words, some investors may bet on further appreciation in the coming weeks. This may be an additional motivation for Bitcoin to move away from the current model. QCP Capital Add to:

However, this time the volatility market reacted completely differently, with signs of upward pressure. Unlike the previous rebound that saw only the front-end vols soaring while the back-end remained stable, this time the peak of the back-end vols and the front-end vols increased simultaneously.

In the short term, the company predicts that there will be more resistance at current levels, and a TD 9 sell signal may appear on July 29dayOn the weekend, the expiration of month-end options may push Bitcoin up to $40,000 and $42,000. If this is the case, QCP Capital expects that these levels will remain the same and may expand to $50,000.

Bitcoin BTCUSD
Source: QCP Capital

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