In the Bitcoin world, almost no news is good news. After today’s massive Bitcoin price fall, traders were split between a belief that the sell-off was related to the recent, pending Bitcoin fork, and another that the news that the Chinese government banned ICOs had done more damage to Bitcoin’s price than the pending fork.
The BTC price is once again in the news for a variety of reasons, ranging from the release of the first BTC/USD futures (Coinbase) to the drama surrounding Bitcoin Cash. The currency has been struggling for some time, but it is important to understand why it has been in a slump.
The recent surge in cryptocurrency prices has made some bitcoin investors happy, and some not so much. Some are excited about the possibility of bitcoin becoming a major currency, available to everyone. Others are worried that the recent price rise may be a bubble, and they’re desperate to get out before the bubble bursts.. Read more about bitcoin price prediction and let us know what you think.
The notion that Amazon will accept cryptocurrency payments generated a wave of optimistic excitement throughout the crypto market earlier this week, but positive mood is starting to fade as Bitcoin (BTC) bulls run into strong resistance around the $40,000 level.
Bears have managed to fend off multiple attempts to flip the $40,000 level to support, according to data from Cointelegraph Markets Pro and TradingView, and defense of this zone continued on July 29 as Bitcoin’s stagnant price action added to concerns that the price could fall back to last week’s $35,000 to $30,000 range.
1 day chart of BTC/USDT. TradingView is the source of this information.
Here’s what experts and investors had to say about Bitcoin’s recent price movements.
The 21-week EMA determines whether a market is bullish or bearish.
According to pseudonymous crypto Twitter analyst Rekt Capital, Bitcoin’s quick rise from $31,000 to $40,925 brought the price near its 21-week exponential moving average, a level generally regarded as a bull market signal.
The 21-week exponential moving average (EMA) is widely recognized as a #BTC Bull Market signal.
When $BTC is higher than it, BTC is considered to be in a bull market.
BTC is considered to be in a Bear Market when its price falls below it.
#Bitcoin #Crypto pic.twitter.com/rMqeWzJS4i #Bitcoin #Crypto #Bitcoin #Crypto #Bitcoin #Crypto #Bitcoin #Crypto #Bitcoin #Crypto #Bitcoin #Crypto #Bitcoin #Cry
July 28, 2021 — Rekt Capital (@rektcapital)
The 21-week EMA is presently around the $40,000 price level, as shown in the tweet above, essentially acting as a “line in the sand” between bulls and bears.
One of the replies to the above tweet warns excessively optimistic traders that similar movements in the past have been followed by lower lows and a continuation of bear market conditions.
6-day BTC/USD chart. Twitter is the source of this information.
Previous occurrences of price breaking above the 21-week EMA have resulted in a reversal that leads to a retest of lower lows in the weeks and months following, as indicated by the yellow circles in the chart above.
Bitcoin whales continue to be greedy, while others are afraid.
Bitcoin whales, who have adopted Warren Buffett’s motto of “be afraid when others are greedy, and greedy when others are scared,” by scooping up low-priced BTC when weaker hands tap out, are one set of market players who have showed no sign of hesitation.
The whales of #Bitcoin have been active, with addresses owning between 100 and 10,000 $BTC reaching a new #AllTimeHigh of 9.19 million coins owned. Since May 22nd, they’ve contributed 170,000 additional $BTC, including a whopping 130,000 in the last four weeks. https://t.co/qv5IbYXgGQ pic.twitter.com/PwrmUyz9Of
July 29, 2021 — Santiment (@santimentfeed)
Whale wallets have amassed 130,000 BTC in the last four weeks, according to data from Santiment, an on-chain and behavioral research platform, when the price of Bitcoin fell below $35,000.
With such significant accumulation in the lower $30,000 to $35,000 area, some experts have speculated that whales may try to engineer another price drop in order to continue to acquire.
Bitcoin bulls are in charge of Friday’s $1.7 billion monthly options expiration.
Long-term cycles provide a ray of optimism.
When there’s a lot of short-term uncertainty, it’s sometimes better to take a step back and look at the broader picture of where the market is now and what the future holds.
Bitcoin’s four-year cycle is now approximately 65 percent through its bull-market phase, according to Inmortal UP ONLY, a pseudonymous Twitter user, and the trader forecasts a peak at $150,000, followed by a drop to $32,000.
The price of bitcoin is calculated in four-year cycles. Twitter is the source of this information.
There is much to be hopeful about in the future for traders and holders who like to work on a longer time frame, and experienced market players know that the price movements witnessed over the last few months are part and parcel of Bitcoin’s regular development.
Ecoinometrics, which compared Bitcoin’s recent post-halving price movement to performances in the previous two halvings, added to the long-term viewpoint.
After the halving on July 29, 2021, #Bitcoin
#BTC at $39,973 443 days after the third halving
Getting back on track with the previous cycle’s development trajectory will take a lot of energy.
However, we may hope that this is the start of a new upward trend.
So far, everything has gone well. pic.twitter.com/a12RYAhlsn
July 29, 2021 — ecoinometrics (@ecoinometrics)
As seen above, the present price of BTC is far below the average increase of past cycles, implying that if BTC is to follow in the footsteps of previous cycles and reach a new all-time high over $100,000, it will have some catching up to do.
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.
Bitcoin was originally created as an alternative currency in 2009, so it’s no surprise that the cryptocurrency has become one of the top performing assets in the market today. The price of Bitcoin has seen a lot of ups and down over the years, and is currently trading at around $4,300 at the time of writing. The price of Bitcoin has experienced a steep fall over the past few months, losing around 90% of its value since mid-December, 2017.. Read more about next coin after ethereum and let us know what you think.
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