Bitcoin continued to bounce off $31,000 support on July 16 as fresh data insisted on the importance of the current price levels. For now, bitcoin is trading sideways with no clear trend in any direction.
Is There A Trip To $42,000?
Data acquired from TradingView showed BTC/USD constantly testing, so far not breaking through $31,000 on Friday. A lat surge to around $32,000 then came as unconfirmed reports came up stating that the Bank of America had approved Bitcoin futures trading.
Market participants had mixed opinions about the near-term outlook, with some popular traders noting on July 15 that $31,000 was something of a final frontier for bitcoin; lose it, and $29,000 or even $24,000 would appear on the horizon.
Crypto ED, a popular trader seemed undecided on the day. Earlier this week, he said that BTC would stage a shocking rebound to reach highs of $42,000 before dropping once more to challenge the $30,000 support. He published an update:
“BTC making new lows is invalidating the idea of continuation of that bounce.”
Even a drop for the US dollar currency index (DXY), which is traditionally inversely correlated with bitcoin, is not likely to help the market bulls considerably, according to Crypto Ed.
Update on this ⬆️
BTC making new lows is invalidating the idea of continuation of that bounce.
I still think DXY should see a pull back but it’s doubtfull that such will move BTC to 42k.
Maybe there’s no hidden play in the charts and BTC is just terribly weak and I was crazy 😊 pic.twitter.com/3nr65V9y4Z
— Crypto_Ed_NL (@Crypto_Ed_NL) July 16, 2021
In the meantime, new data indicated that there is a considerable on-chain activity having happened at the current price levels. Based on Glassnode on-chain monitoring resources, 9.93% of the BTC supply moved between $31,000 and $34,300, a clear zone of interest for the buyers and sellers. The company commented:
“This is now convincingly the largest realized volume cluster since $12k.”
In the past, reports emerged that $30K itself forms an integral level in the minds of small and large traders, whose behavior has changed from a ‘sell’ to a ‘buy’ mentality in the recent weeks.
Altcoins Lose On Middling Sentiment
In the meantime, a review of the altcoins brought up the lack of bullish sentiment across crypto markets as the week came to an end. A majority of the top 50 tokens by market cap saw severe losses than bitcoin, some reaching up to 12% amid an absence of any notable price triggers.
The biggest altcoin, Ether (ETH), was heading to a critical support level of its own near $1,800. The beginning of a new accumulation period was now ‘highly likely’ according to some analysts but bitcoin’s increasing dominance added more to the altcoins’ troubles.