Bitcoin's latest attempt to breach the $70,000 mark was met with swift rejection, resulting in a $4,000 drop. As of July 30, during the Asia trading session, BTC settled around $66,500, unable to maintain the previous day's momentum. The brief spike and subsequent fall, a pattern familiar to seasoned traders, was marked by nearly 6% volatility in just hours.
Key Observations:
Failed Resistance: Bitcoin reached $70,000 but couldn't hold the position, quickly dropping back.
US Government Transaction: The decline coincided with a $2 billion withdrawal from a US government-linked wallet, contrasting with recent pledges to bolster a strategic Bitcoin reserve.
Market Sentiment: According to William Clemente of Reflexivity, the timing of these moves was deliberate, suggesting more market fluctuations ahead before a potential upward trend.
Analysis and Predictions:
Daily Trendline: Keith Alan from Material Indicators emphasized the need for Bitcoin to establish $69,000 as a solid support to aim for new all-time highs, beyond the 2021 peak.
Short-Term Targets: Trader Roman suggested potential drops to $64,000 and $60,000, anticipating a sentiment-driven short squeeze that could propel BTC back up.
Mark Cullen, another analyst, highlighted the critical juncture Bitcoin finds itself in, questioning whether it will stabilize around the current trendline or dip further to form a new lower high (LH) before possibly rebounding.
Onchain Analysis:
Exchange Withdrawals: CryptoQuant observed an increase in the mean amount of BTC per exchange withdrawal transaction, indicating a growing trend of outflows. This could signal a positive shift in market sentiment, suggesting a potential breakout from the current fluctuation zone.
As Bitcoin's price continues to oscillate within this volatile range, market watchers are closely monitoring these developments. The interplay between onchain data, macroeconomic signals, and trading strategies will be crucial in determining the cryptocurrency's next significant move.
