Bitcoin sellers “unbelievable” or the price of BTC will not remain at $41,000 — analyst

Bitcoin (Bitcoin) July closed above 41,000 USD, forming a “bullish engulfing” candle chart, which greatly subverted the previous downtrend.

in a tweet On August 1, investor and entrepreneur Alistair Milne celebrated the classic return of BTC price movements with many people.

Bitcoin refuses to bearish

After seeing three consecutive monthly red candles, BTC/USD kept rising in late trading, appearing at a monthly closing price that few people expected.

Despite falling to $29,000, the bears failed to maintain their dominance at the end of July as resistance levels fell and sentiment improved.

“It is bullish engulfing on Bitcoin’s monthly chart,” Milne concluded.

A bullish engulfing pattern is a chart pattern. When a small red candle follows a large green candle, that is, in July, its body completely covers or engulfed the body of the previous candle (June).

BTC/USD 1-month candlestick chart (Bitstamp). Source: TradingView

The rise-and its staying power-is so surprising that even experienced hoarders are confused about what to do next.

Data on the chain shows that with the rise of BTC/USD, some long-term holders (LTH) are actually selling, analyst Lex Moskovski said Believe Corresponds to the “doubt” phase of the classic market cycle.

Moskovsky emphasized the Long-Term Holder Spending Output Profit Rate Index (LTH-SOPR), which reached its lowest level in 2021 this weekend.

SOPR looks at the value of coins moved in a certain period of time to understand the profitability of the coins sold. Downward trend towards neutral 1 value, hosting Glassnode explain, Indicating that the profitability of related tokens is low.

Moskovski commented: “As indicated by LTH-SOPR’s two consecutive days of hitting this year’s lows, some long-term Bitcoin holders are selling this rebound with the lowest profit.”

“This is one of the reasons we are still at 41k. Unbelievable.”

Bitcoin LTH-SOPR annotated chart.Source: Lex Moskovski/Twitter

“regular”

At the same time, the bulls continue to look for triggers that may allow BTC/USD to break through the $42,000 resistance level, which has been tested twice in the past 24 hours.

related: As illiquid supply hits a record high, Bitcoin “super cycle” hits the highest point of BTC price in the fourth quarter

There, as Cointelegraph famous, There are almost no obstacles before 45,000 USD and 47,000 USD.

Also keen to rise on Saturday was PlanB, the creator of the stock-to-flow price model series. He described Bitcoin’s July closing price as a “clockwork” recovery.

Although Stock-to-flow currently requires the price of Bitcoin to be close to USD 100,000, it is still valid. PlanB gives at the lowest limit The August closing requirement is $47,000.