Bitcoin (BTC) made another attempt to break out on July 11, as the battle for yearly highs continued. The price briefly passed the $31,000 mark before the daily close on July 10. This move seemed to be inspired by last week’s upward spike in BTC price. However, the momentum waned, causing the price to fall back over $800. Nevertheless, some continuation occurred afterward, and at the time of writing, Bitcoin was trading around $30,500.
According to Michaël van de Poppe, founder and CEO of trading firm Eight, the overnight move exhibited characteristics of a “leverage crunch.” He shared on Twitter, “Bitcoin had a leverage crunch in the past 24 hours, taking out all the highs & going back to the start in one go. The only difference between now and Thursday? No new lows have been made. $30,200 supporting. Don’t get chopped out!”
Crypto Daan, a popular trader, compared the recent behavior of BTC price to the “Bart Simpson” style chart patterns observed in the past. These patterns involve the price spiking to a plateau and then retracing the full run later. However, the current chart structure resembles the Burj Khalifa, suggesting a different pattern.
Trader and analyst Rekt Capital highlighted the importance of the $30,600 level. He stated, “BTC is now pressing past the ~$30,600 Ascending Triangle resistance. But it’s key to note that Bitcoin has pressed past this level before only to form an upside wick. So BTC needs to turn the ~$30,600 into support in the coming days for BTC to confirm its breakout.”
Despite the ongoing battle for yearly highs, Bitcoin has remained within a familiar range for several weeks. Glassnode, an analytics firm, noted in its weekly newsletter, The Week On-Chain, that this range-bound behavior is typical of Bitcoin price cycles. The $30,000 level has acted as a “mid-point” and has been tested several times both from above and below. This pattern is similar to the patterns observed in previous cycles at different price levels, such as $425 in 2013-2016 and $6.5k in 2018-2019.
Glassnode referred to the current BTC price action as “re-accumulation.” This suggests that investors are accumulating Bitcoin at the current price level in anticipation of a potential breakout.
In conclusion, Bitcoin made a fresh breakout attempt but faced resistance and retraced some of its gains. Traders and analysts are closely monitoring key levels to determine if the breakout will be confirmed. Meanwhile, the price remains range-bound, and investors continue to accumulate Bitcoin in preparation for potential future upward movements.
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