On Thursday, November 2nd, Bitcoin fell to a fresh low of $29,400 and failed to hold above $28,000 for the first time since October 22nd, as well as since early October. This is the first time Bitcoin has fallen below the $28,000 support level since October 24th. Over the last two weeks, the price has fallen from a high of over $38,000 to its current price at $30,000.
Just when Bitcoin was starting to show signs of life in the last quarter of 2017, the cryptocurrency was hit by a wave of selling, which lead to its price falling to as low as $29,500. This is a significant drop from the $19,500 price it hit at the start of the year. The last time this digital currency hit a similar low was back in November of last year, when the price had fallen to $6,000.
It’s that time again, when the prices are turning green. When the bulls are back in town, and the crypto markets are back on track to attain their next price target. In January, the Bitcoin price dropped to $29,500, and in April, it is looking to get t ight to $5,000 mark – down from its all-time high of more than $20,000 in December. The parity between the USD and BTC price is currently $4,500 as the BTC’s price is still under $5k.
Traders are expressing fresh optimism after Bitcoin’s (BTC) price remained around the $32,000 area for the second day in a row.
Bulls have managed to regroup at the $32,000 level, where Bitcoin has hovered throughout the day, according to data from Cointelegraph Markets Pro and TradingView, but traders are patiently waiting for more confirmation that Bitcoin is in the midst of a trend reversal before fully re-entering the market.
1 day chart of BTC/USDT. TradingView is the source of this information.
Here’s what experts and investors think the Bitcoin price will do next.
The CME futures market is seeing a bullish rise.
According to a recent analysis from Delphi Digital, on July 21, an abrupt turnaround in the CME futures basis was seen, which is a positive indication for BTC traders who bought ‘cheap’ futures contracts. Because the futures price is higher than the asset’s spot price, the ensuing contango is considered positive.
Bitcoin futures for one month. Delphi Digital is the source of this information.
The open interest for CME’s Bitcoin futures quadrupled from $1.25 billion on July 19 to $2.5 billion on July 20 after institutions positioned themselves “slightly net long after a prolonged period of being short,” as seen in the figure above.
While leveraged funds are still in the red since they use CME futures to hedge their spot exposure, Delphi Digital said that they had “closed out part of their positions.”
According to Delphi Digital,
“Considering BTC experienced a brief pump to recover its range a few hours after the New York session closed, CME’s new futures contract launch is a somewhat optimistic story. As previously mentioned, CME futures basis reached negative territory yesterday before reversing significantly. As BTC dropped below the price range it’s been in for months, all the evidence points to individuals buying up futures contracts.”
Multiple zones of resistance continue to obstruct Bitcoin’s progress.
Many traders’ optimistic confidence was rekindled by Bitcoin’s rebound over $32,000, but the path ahead is far from easy owing to the numerous zones of resistance that lie above.
According to Rekt Capital, a pseudonymous crypto Twitter analyst, several of Bitcoin’s prior support levels, such as $35,000 and $37,000, may soon become resistance.
Overall, #BTC is about to face a slew of fresh resistances.
Last week, it lost support at the red $32200 weekly level.
The blue 50 week EMA ($33700) was just lost.
The black 2021 Higher Low ($34800) is also a good bet.
All of the previous supports have been removed.
All new resistances are possible. pic.twitter.com/rYGSjoPAlY $BTC #Crypto #Bitcoin
— July 22, 2021, Rekt Capital (@rektcapital)
At the time of writing, Bitcoin is trying a sustained breakthrough above $32,200, where it has been stalled for the better part of the day.
In the past, exchange inflows have peaked around market bottoms.
Another optimistic indication came from Twitter user IzzyEibani, who cited the recent increase in exchange inflows as a potential sign that the bottom had been reached.
Inspired by a tweet from @MrBenLilly, here’s a little bull hopium for you.
Since 2017, exchange inflows have risen three times, each time coinciding with a significant market bottom.
The fourth spike has finally been finished… pic.twitter.com/FEys8uZ59G #bitcoin #BTC
July 22, 2021 — IzzyEibani (@IzzyEibani)
A deeper examination of the graph reveals three other occasions, on Aug. 1, 2017, Nov. 30, 2018, and March 12, 2020, when inflows to exchanges surged in a similar way to what occurred on July 16. Following the inflows, the market bottomed out in a short amount of time.
Exchange inflows versus. bitcoin price CryptoQuant is the source of this information.
If the market continues to follow its historical trend, the latest decline below $29,500 may have been the bottom.
The author’s thoughts and opinions are entirely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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