The plunge in the price of Bitcoin recently struck at $63,700, a clear sign that bearish momentum has been gaining strength. Analysts have averred that for any confirmation of an uptrend and significant rally past $74,000, Bitcoin has to reclaim its previous all-time high—currently standing at $69,000. BTC was trading at $63,902.52 at press time, a 1.22% dip from the intra-day low.
Source: CoinMarketCap
Commenting further was a co-founder at Glassnode, Yann Allemann, who said that only upon reclaiming this old high would a bullish continuation be expected, thereby setting the stage for potential advances beyond $69,000. Popular technical analyst Trader Tardigrade noted the same bull flag pattern in Bitcoin’s daily chart, with a target at $74,000.
However, for Bitcoin, resistance is currently around $65,000, and so far, that resistance has proven strong enough to keep the cryptocurrency from trading above that price level. Analysts, among them Rekt Capital, have been insisting that Bitcoin is not yet prepared to make a successful retest of the $65,000 level as new support so there could be more challenges.
Bitcoin is not quite ready just yet for a successful retest of the ~$65,000 level as new support
Bitcoin will need a similar retest like in the not-so-distant past (blue circle) to confirm a break back into the $65,000-$71,500 region$BTC #Crypto #Bitcoin https://t.co/Ct0P7qzTmS pic.twitter.com/HylRSusUTG
— Rekt Capital (@rektcapital) July 17, 2024
Bitcoin ETF Inflows and Market Sentiment
New support at the level has also contributed to the fast fluctuations of recent price action in Bitcoin ETF inflows. It’s interesting to read that the $422 million inflow recorded on July 16 had decreased to around $53 million by July 19, as per data by Farside Investors.
But this has actually come at the time that Bitcoin’s bullish price action seems to be slowing down, an implication that it would indeed require consistent inflows to sustain an upward momentum.
Besides, Bitcoin ETFs also historically took the lead in price movements: 75% of new investment in Bitcoin during past rallies went to this instrument.
Support and Resistance Analysis
Bitcoin’s price is currently testing crucial support levels between $63,000 and $64,000, attempting to stay afloat above that zone to prevent further losses. If this support doesn’t hold, there is a chance that Bitcoin could correct to the next support range of $60,000-$61,000.
On the resistance side, Bitcoin is also massively rejected around $67,000-$68,000. Further up, more resistance may come into play in the range of $72,000-$74,000. Other analysts have observed some kind of liquidity area at about $61,900 to $62,100 and a large liquidity of around $59,000 that buyers will jump into if prices tumble.
These levels serve as the last lines of defense for securing short-term price stability and are places where strong reclaim of this area may initiate an upward impulsive drive.
Historical Trends and Price Projections
The historical observation of Bitcoin price behavior can allow speculation on a huge upside. For instance, periods of miner capitulation have, in the past, resulted in strong price increases.
Analysts at Cryptonary say that the miner capitulation period at the tail end of the previous cycles was followed by exponential price gains and pegged a potential top for this cycle at $223,000 from historical precedents.
#Bitcoin Bollinger Bands are crazy tight by historical standards.
Only two other months in history have we seen the weekly Bollinger Bands so compressed: April 2016 and July 2023.
During both of the previous episodes, Bitcoin prices rose significantly over the following twelve… pic.twitter.com/hBb8d73SGc
— Julien Bittel, CFA (@BittelJulien) July 19, 2024
Further constriction in Bollinger Bands, which is one of the important volatility indicators, might indicate an impending big price move in Bitcoin.” Historically, such constrictions have been followed by major bullish trends that have some analysts looking ahead to possible targets of up to $190,000 if historical patterns repeat.
