43 Interactions, 2 Today
Bulls are struggling to regain lost support levels, but $30,000 remains a strong foundation for Bitcoin’s trading range.
Bitcoin (BTC) failed to break above $33,000 on July 14 after a small recovery from multi-day lows.
BTC price: Fits and starts below $33,000
Overnight, the pair briefly hit $31,750 before a strong comeback achieved highs of $32,970. This meant that $33,000, which had previously had strong backing, remained out of reach.
This zone from $32,600 onwards, according to prominent trader Michael van de Poppe, was “critical to break” in order for Bitcoin to have a chance of achieving goals higher up in its trading range.
“Many altcoins making double bottom tests. Great,” he added in his latest Twitter update.
At the time of writing, Bitcoin circled $32,800 following repeated attempts to crack $33,000. Buy and sell levels on Binance showed support firmly in place at $30,000, with a resistance band at $33,000 nonetheless slowly fading.
Strong hands quietly scoop up liquidity
On the day before a much-publicized “Bitcoin bill” was to be brought before the Paraguayan government, expectations were high. While details on the law are few, optimists believe that the government would follow El Salvador’s lead and make Bitcoin legal money.
Beyond network fundamentals, there was nothing more for bulls to exploit at the time of writing, with accumulation by large and small investors yet to be seen in price action.
However, new research by William Clemente suggests that there may be a “lag” in price reaction.
“Vice versa. Price can sometimes lag the accumulation flows. For example in January or September 2020 we had a bull div, not nearly this size though,” he said in Twitter comments.
“Also to note: we had one in March 2020, but macro forces can obviously override this.”
Clemente emphasised a chart of Bitcoin’s liquid supply ratio (LSR), a measure that is currently signalling BTC movement to people who have minimal history of selling.
“Nothing has changed, supply shock still in play,” he said, referencing last year’s block subsidy halving.
“LSR shows that the action of Bitcoins being reabsorbed by strong hands only continues to diverge more from price. Exchanges also down -21,829 BTC in the last 2 weeks; clear trend of accumulation in those flows as well.”