Bitcoin (BTC) experienced a drop below $30,000 following the opening of Wall Street on July 20. The price decline came as one analyst predicted that Bitcoin could return to its range lows. On the hourly chart, BTC/USD reached a high of $30,400 at the 21-day simple moving average (SMA), but quickly retraced its progress.
Michaël van de Poppe, the founder and CEO of trading firm Eight, cautioned that Bitcoin could potentially revisit its lower levels before making any significant upward movement. He expressed his viewpoint on Twitter, stating, “Not breaking the crucial area, seems like we’re going to have another sweep of the low for Bitcoin.”
Another trader, Daan Crypto Trades, also noted the likelihood of increased volatility due to rising open interest. He mentioned that Bitcoin had found support on the bottom of the range and the 4-hour 200-period moving average and exponential moving average, but emphasized that the bounce was not yet convincing. He identified $30.5K and $29.5K as the levels of interest in the short term.
Material Indicators, an on-chain monitoring resource, highlighted the importance of the 21-day SMA and suggested that BTC/USD might experience a temporary peak. The analysis mentioned a hard rejection from technical resistance and a buildup of sell walls at $31,000, indicating a possible period of consolidation for Bitcoin. The analysis urged the bulls to gather momentum and push past the sell walls.
The Binance BTC/USD order book also indicated a lack of bid liquidity just below the $30,000 mark. This could suggest a potential barrier for Bitcoin’s price to overcome.
Meanwhile, macroeconomic events, such as strong tech earnings and a slowdown in US jobless claims, influenced the US dollar. The US dollar index (DXY) gained ground, reaching nearly 101 for the first time in several days. Traders pointed out that the decrease in jobless claims contributed to the stronger US dollar.
It is worth noting the changing dynamics between BTC price performance and the strength of the US dollar, as previously highlighted by Cointelegraph. BTC’s correlation with the US dollar index is an important factor to consider when analyzing the cryptocurrency market.
As always, it is essential to conduct thorough research and exercise caution when making investment decisions. This article does not provide any investment advice or recommendations.
Source link
