CryptoQuant says Bitcoin whales are easing their selling pressure as the crypto continues to strengthen over the past week, maintaining a value above $66,000.
"Large Bitcoin sellers are showing signs of exhaustion, and valuation metrics indicate positive momentum," stated CryptoQuant head of research Julio Moreno in a July 20 X post, referring to Bitcoin investors with balances between 1,000 and 10,000 BTC.
Moreno also noted that "realized profits are minimal compared to March or May," when Bitcoin exceeded $71,000 in both months. Bitcoin reached its all-time high of $73,679 on March 13.
Bitcoin Technical Analysis
The Bitcoin price action over the past few trading sessions has presented a nuanced picture for traders, with both opportunities and risks evident on the 4-hour chart. As of the latest data, BTC's closing prices show a range-bound movement, indicating a potential consolidation phase. The most recent closing prices hover around $66,860.38, with key resistance and support levels identified that will likely play crucial roles in the coming sessions.
Bitcoin faces immediate resistance at $67,036, a level that, if breached, could lead to a retest of the higher resistance zones at $67,157.26 and $67,195.1. These resistance levels are crucial as breaking above them could signal a bullish continuation, potentially drawing in more buying interest and pushing prices higher.
On the downside, support is found at $66,823.63. If $BTC fails to hold above this level, it could seek support at $66,470.01 and $66,244.48. These support zones are vital for maintaining the current price structure, and a breakdown below them could trigger a deeper correction.
The 9 EMA (Exponential Moving Average) and 20 EMA provide mixed signals. Currently, the 9 EMA is above the 20 EMA, which is a bullish signal. However, the convergence of these EMAs suggests a possible slowdown in bullish momentum. Traders should watch for a potential crossover which could indicate a shift in trend.
MACD (Moving Average Convergence Divergence) analysis reveals a diminishing bullish momentum. The histogram has turned negative, indicating bearish pressure might be increasing. This shift suggests caution, as the MACD line is nearing the signal line, potentially indicating a bearish crossover.
RSI (Relative Strength Index) values, though still in bullish territory, have shown a decline from overbought levels. An RSI reading above 70 typically indicates overbought conditions, but the recent dip suggests a cooling off period. If RSI continues to fall towards 50, it could reinforce the bearish outlook.
For traders considering long positions, a break and close above the $67,036 resistance could be an entry signal, targeting the next resistance levels at $67,157.26 and $67,195.1. Conversely, if Bitcoin fails to sustain above $66,823.63 and falls towards the $66,470.01 support, it could be an opportune moment for short trades, with a close eye on further downside to $66,244.48.
In summary, while the #Bitcoin price displays signs of both bullish and bearish potentials, traders should remain vigilant of key levels and indicator signals. The market's next move will likely hinge on these pivotal resistance and support zones.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.