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Bitcoin Price Analysis: BTC Needs to Close Weekly Candle Above This Major Level

BTC has definitely surprised market participants lately after a 10-day green streak, managing to break above $40K. Just overnight, BTC staged a last-minute rally and made the first daily close above the top of the trading range closing at $42.2k.

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Chart by TradingView

Bitcoin Overcomes $40K

On July 28th, 2021, the third-largest BTC whale transferred 3000 BTC to Coinbase, signaling near-term caution on price. As we reported, this has been a local top indicator on quite a few occasions in the past. The cryptocurrency then saw a minor correction from a high of $40.9k to a low of $38.3k.

The bulls managed to stage a solid recovery, marking the first daily close above the 2-month long trading range between $30k and $40k. This is the first major step in transitioning from the accumulation phase back into bull market continuation.

Throughout the impressive 10-day streak, BTC momentum on multiple time frames continued to trend higher, pushing above neutral zones. This is a very bullish signal of another large leg higher mid-term as these signals have flashed multiple times before in previous bull markets.

Notably, when BTC makes 9 consecutive daily candles higher, this has historically led to mid-term rallies, as shown in the chart below.

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Chart by TradingView

Previous resistances are now near-term support at $41.3k, $40.9k, and $40k. Ideally, these levels need to hold on a backtest.

Confirmation Needed

The recent price action is very bullish for BTC, but we have to wait for the weekly close for validation. Last week, BTC printed a weekly hammer candle, a signal of a potential reversal, especially after snapping back above $30k. The cryptocurrency needs to close at the highs this week to validate the pattern.

Although near-term price action is bullish, BTC remains below resistance at the 200-day MA and the 21-week MA, both critical levels to reclaim. The technicals will turn very bullish if BTC can successfully close and stay above these levels.

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Chart by TradingView

In aggregate, when considering bullish technicals, significantly improving momentum, bullish on-chain metrics in net outflow exceeding inflows, accumulation, and the recent drop in exchange reserves, BTC hash rate recovering, and record network user growth, the current set-up looks very favorable for the bulls.

Source: Crypto Potato

Bitcoin Spikes to a 2-Month High Above $42K: Up 25% in July (Market Watch)

Bitcoin has initiated another leg up, resulting in charting a new two-month high of just over $42,000. Apart from Chainlink, most alternative coins trail behind, and BTC’s market dominance has increased to well above 48%.

Bitcoin Taps a 2-Month High

As reported earlier this week, bitcoin went on a tear after dabbling with the $33,000 price line for a while and charted a $7,000 green candle. As a result, the cryptocurrency briefly exceeded $40,000 for the first time in over a month.

However, the bears intervened and pushed the asset south shortly after, and BTC retraced to just over $36,000. Nevertheless, it didn’t stay there for long and started gaining value once more.

Consequently, it went back to the $40,000 level and stood there for a few days without any decisive moves in either direction. This changed yesterday when it suddenly dropped to $38,000.

At that time, though, the bulls came back to play and drove bitcoin north again. In the following hours, BTC jumped by more than $4,000 and spiked above $42,000 (on Bitstamp). This became the highest price tag registered since the mid-May crash.

As of now, the asset has retraced slightly and stands above $41,500. However, its dominance over the alternative coins has increased to 48.3% as most of them have failed to follow it north.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

ETH Neared $2.5K as LINK Spikes 10%

The largest altcoin also charted a monthly high of just shy of $2,500 hours ago. It has retraced slightly since then to $2,450, but it’s still 1.5% up on the day.

Binance Coin has calmed around $320, despite all the regulatory concerns surrounding the exchange behind the asset. Cardano, Dogecoin, Bitcoin Cash, and Litecoin have marked minor gains since yesterday.

Polkadot and Uniswap have both increased by a similar percentage (around 4%) and currently trade at $16 and $21, respectively.

Chainlink is the most impressive performer from the larger-cap alts with a 10% surge. As a result, LINK has spiked above $22.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

 

Somewhat expectedly, more fluctuations are evident from the lower- and mid-cap altcoins. NEO leads the way with a 25% increase in a day and a 46% surge in a week to $44.

Interestingly, THORChain (20%) is next. RUNE trades at $6,50, despite the recent hacks against the network behind it. Flow (19%), Helium (15%), Stacks (13%), and Ravencoin (10%) follow.

The cumulative market capitalization of all crypto assets is up by nearly $100 billion since yesterday’s low and is above $1.6 trillion for the first time since mid-June.

Source: Crypto Potato

$45B Asset Manager GoldenTree Has Reportedly Bought Bitcoin

GoldenTree Asset Management, a US asset management giant with $45B in AUM, has reportedly purchased portions of the primary cryptocurrency. The move aims to diversify some of the organization’s already existing strategies.

  • Founded over two decades ago, GoldenTree is an asset manager headquartered in New York City with offices in numerous other important financial cities such as London, Singapore, Tokyo, and Sydney.
  • According to a report by The Street, the institution has dipped its toes in the cryptocurrency industry by purchasing an undisclosed amount of bitcoin.
  • Citing two sources familiar with the matter, the coverage indicated that putting BTC on the balance sheet will work as a diversifier for the “broad mix of debt-focused strategies it has run for years.”
  • Furthermore, GoldenTree has reportedly had internal discussions to establish a dedicated team responsible for its cryptocurrency investments.
  • With GoldenTree, the number of large asset managers showing an appetite for bitcoin keeps growing.
  • The most prominent name has to be BlackRock. The world’s largest asset manager dabbled with BTC through CME and reported gains of $360,000 in April this year.
  • Stone Ridge, another Wall Street behemoth, filed to add the cryptocurrency to its diversified alternatives funds.
  • This trend expanded outside of the US as well, with the Israeli company – Altshuler Shaham – buying BTC through the Grayscale Bitcoin Trust.

Source: Crypto Potato

Mastercard Has to Be in the Cryptocurrency Space, Says CEO

As cryptocurrency adoption enters a mainstream stage, traditional financial services platforms are trying to adapt to the changing financial ecosystem.

To maintain their importance in this industry, payment processors like Mastercard and Visa intend to use their large client base and international reach to attract both government and private entities when they are testing their CBDC or stablecoin projects.

During an earnings call yesterday, Mastercard’s CEO, Michael Miebach, revealed that the company is devising a new initiative to help startups and a virtual testing platform for central banks.

Mastercard CEO: We have to be in this Space

According to Miebach, the cryptocurrency industry is still a relatively new market, and people are curious to know how exactly it works. His company plans to be the link that helps them understand the use cases and impacts.

“What we believe we do is bring a perspective to the market as a multi-rail payment provider. We have to be in this space because people are looking for answers,” the CEO said.

Miebach noted that the company is experienced in its field of expertise and is poised to provide central banks with whatever services they need, especially on the growing trend of CBDCs. 

“All of these countries have to make a trade-off between existing delivery of financial products and what a CBDC is solving for, whether it’s financial inclusion or cross-border payments. We have experience with all of that,” he added. 

Michael Miebach
Michael Miebach. Source: Linkedin

On the topic of stablecoins, Miebach disclosed that Mastercard would soon provide support for such transactions on the condition that the issuers strictly stick to financial regulations and ensure users’ safety.

Just a few weeks ago, Mastercard announced that it had partnered with USDC stablecoin issuer, Circle, to test USDC settlements on its platform.

Mastercard’s Merchants to Accept Crypto

With several institutional and individual investors becoming increasingly interested in cryptocurrencies, payment facilitators like Mastercard decided to provide support for them to avoid losing their clients to competitors.

Earlier this year, the company revealed that it would start supporting several selected cryptocurrencies, admitting that they have become a vital part of the payments sector.

The initiative will allow Mastercard’s over 900 million users to spend their crypto assets on all supported Mastercard vendors.

Source: Crypto Potato

The Bullish and the Bearish Case For Bitcoin Following the Rally to $40K (On-Chain Analysis)

Going through the recent week and touching the $40K mark, there are some promising signs in on-chain data that could lead to a further price recovery in the market. However, some metrics still make an immediate rally back to the all-time high a questionable probability.

Let’s explore the bull and the bear case for Bitcoin’s price in the current market condition, stemming from predominantly on-chain information.

Supply Shock – The Bull Case

To summarize the overall bullish indications from an on-chain perspective, we can look at the exchange net position change on all exchanges.

This examines the change of the supply held in exchange wallets over the past 30 days. To make things smoother, there’s a 90-SMA version of the metric presented in the chart below.

Historically speaking, there is a repeated pattern in all last three bitcoin cycles.

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Data by Glassnode
  • Around the middle of the cycle, wherein the bearish phase, a significant capitulation usually occurs, and we observe a slight net decline in the exchange’s reserve (red circle)
  • Before the significant bull run phase, there’s an enormous negative net change in exchanges’ Bitcoin reserve (yellow rectangle). In practicality, this is an accumulation phase for experienced players in the market. These stakeholders intend to withdraw from exchanges wallets.
  • Through the following phase, Euphoria, wherein the prominent entities in the market (whales, institutional players, and smart money) are selling into the market’s strength. Here in this phase, inflowing Bitcoins into exchanges are bought by newcomers who intend to hold their assets on the exchanges.

The first two parts of the above pattern have already occurred in the current cycle. Therefore, assuming Bitcoin repeats the three parts of the cycle, we could be at the beginning of a long bull run, similar more to that of 2013 with a double top formation.

Low Activity – The Bear Case

Besides the positive signals from an on-chain viewpoint, the metrics attributed to the activity level on the network still do not promise a robust recovery.

This lack of activity on the network can be observed in the Number of Active Addresses and Number of Transactions. These parameters have fallen because of fear, uncertainty, and doubt (FUD) among newcomers after the recent 50% drop. The primary fuel needed for a bull run is the inflowing capital by these investors who are willing to buy Bitcoin at inflated prices.

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Chart by Glassnode
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Chart by Glassnode

Conclusion

Even though some early evidence, such as supply shock structure, could lead to a healthy rally to a new ATH, some on-chain metrics are still not back to the pre-price crash. The most critical metrics to watch here are the volume, number of transactions, and new addresses on the blockchain.

The above analysis is compiled by on-chain analyst CryptoVizArt for CryptoPotato

Source: Crypto Potato

Binance Completes Polygon Mainnet Integration For Deposits and Withdrawals

Leading cryptocurrency exchange Binance has completed the integration of Polygon mainnet to support deposits and withdrawals of the mainnet token of the Ethereum-scaling network. 

Binance Now Supports MATC Mainnet Token

According to a press release shared with CryptoPotato on Friday, Binance users will now be able to make deposits and withdrawals with the MATIC mainnet token. 

They will also be able to utilize several DeFi dApps such as SushiSwap, Aave, Curve, and Balancer, without having to use the Polygon Ethereum Matic bridge and at a relatively low cost.

With the completion of Polygon’s mainnet integration, Binance has now joined a growing list of reputable crypto exchanges and wallet providers, including Coinbase, OKEx, Huobi, and Trust Wallet, to adopt the network.

In addition to allowing users to deposit and withdraw MATIC’s mainnet token, Binance noted that it would continue to allow deposits and withdrawals of ERC20, BEP2, and BEP20 MATIC tokens.

Driving Crypto Adoption

Polygon is an Ethereum scaling and infrastructure formerly known as Matic. The network is rapidly becoming one of the most widely adopted blockchains in the crypto industry, with a list of top players in its portfolio.

The project provides developers with a variety of tools to build and connect various chains that are compatible with the Ethereum network. Polygon’s Proof-of-Stake (PoS) commit chain is currently supported by Infura, Metamask, Alchemy, Etherscan, and many more.

The project’s scaling solutions, which it claims are designed for flexibility and independence, are currently adopted by over 450 dApps, with more than 13.5 million unique users and over 350 million transactions.

Polygon has been in the headlines lately. After announcing that it plans to develop a general-purpose blockchain for standalone chains, sidechains, and other Layer-2 solutions, the project launched a new blockchain unit that focuses on growing the global decentralized gaming and NFT markets.

Earlier this month, Polygon partnered with leading blockchain payments provider Wyre to provide a fiat-to-USDC on-ramp to customers across the world.

Source: Crypto Potato

Bitcoin’s Back to $40K, Millions of Shorts Liquidated: The Weekly Crypto Recap

After weeks of prolonged consolidation and choppy sideways action in a very squeezed and narrow range, Bitcoin finally broke out. Fortunately, it was to the upside.

Over the past week, BTC is up by a considerable 20%. At the time of this writing, it’s trading at around $39K, having pulled back slightly from the psychological and technical resistance at the coveted $40K level. It’s also worth noting that we saw an increased trading volume over the past week, and even though it’s nowhere near the levels of April and May, it’s still an improvement.

The week started out with a promising ascend. By Sunday, BTC had already gained about $2.5K, but it was on Monday when the serious advance took place. The price skyrocketed from about $35,000 to $40,000, leaving millions worth of short positions liquidated. From there, it was an on and off battle with the coveted line, and eventually, BTC was unable to definitively conquer it. Today, we saw its price sliding down to $39K.

Most of the cryptocurrency market followed suit, and a lot of the altcoins charted impressive gains as well. Ethereum is up by 15.5%, BNB is up by 6%, ADA – by 7%, XRP – by 21%, and so forth. However, it became apparent that Bitcoin’s advance is stronger than that of the rest of the market as the BTC dominance index jumped by 2% over the week.

All of this happened on the back of some serious developments in the field. It appears that governments across the world continue to push for tougher crypto-related regulations across various fields, including taxation. After slashing its leverage down to 20x (from a max of 125x), Binance, for example, also revealed that it would be halting derivatives products in certain countries in Europe.

On a more positive note, a recent survey revealed that the number of cryptocurrency users more than doubled in the first half of the year. This is undoubtedly an impressive accomplishment in terms of overall mass adoption. America’s second oldest bank – State Street – doubled down on its involvement and said that it would be offering crypto services to its private fund customers.

In general, this week’s market performance was a breath of fresh air, especially coming after months of prolonged choppy action. Whether or not the positive momentum will continue, however, we have yet to see.

Market Data

Market Cap: $1540B | 24H Vol: 78B | BTC Dominance: 47.6%

BTC: $39,057 (+20.7%) | ETH: $2,347 (+15.5%) | XRP: $0.72 (+21%)

This Week’s Crypto Headlines You Can’t Miss

Binance Halts Derivatives Products for Users in Italy, Germany, and the Netherlands. The world’s leading cryptocurrency exchange, Binance, announced that it would halt its derivatives products for users from Italy, Germany, and the Netherlands. This comes amid a broader regulatory clampdown on the entire industry.

Number of Crypto Users Doubled in Just 6 Months: Survey. Following the parabolic advance of the entire cryptocurrency market, the industry saw an influx of new users. As a matter of fact, a recent survey revealed that their number doubled in just six months.

For The First Time Since May 12th: Bitcoin Fear and Greed Index is Neutral. The Bitcoin Fear and Greed index became neutral for the first time since May 12th. Before that, the market was either in a state of fear or extreme fear. This shows that confidence has returned in the past few days.

Goldman Sachs Files for “DeFi” ETF to Track Tech Giants. The giant Wall Street investment bank Goldman Sachs has applied for an exchange-traded fund (ETF) for what it says is the decentralized finance (DeFi) space. However, things are a little bit different than what they seem to be.

Not Yet: Amazon Denies Rumours on Plans to Accept Bitcoin. The world’s largest online retailer, Amazon, has officially denied all rumors related to it accepting Bitcoin as a means of payment this year. A spokesperson definitively stated that the company has no such plans.

America’s Second Oldest Bank State Street to Provide Cryptocurrency Services to Private-Fund Customers. The second oldest bank in the United States, State Street, said it would offer cryptocurrency services to its private-fund clients. To do so, the institution partnered with the crypto-focused technology company Lukka Inc.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Binance Coin, and Solana – click here for the full price analysis.

Source: Crypto Potato

MicroStrategy to Buy More Bitcoin Despite Q2 Impairment Loss

The NASDAQ-listed software giant MicroStrategy has seen a total impairment loss of nearly $700 million in Q2 2021 from its massive bitcoin investments. As this is only on paper, though, the company pledged to double down on its BTC strategy and continue to accumulate more.

MicroStrategy’s Q2 BTC Impairment Loss

Michael Saylor’s brainchild has become one of the largest holders of bitcoins, with over 105,000 coins accumulated in the span of a year. However, the substantial purchases completed during the second quarter of this year have resulted in a cumulative impairment loss of $689.6 million for the company, according to the Q2 report.

Despite the positive revenue during this period from the non-bitcoin products, the operating expenses, which “included impairment losses on MicroStrategy’s digital assets,” have resulted in a paper loss of $424.8 million.

Nevertheless, this seemingly unfavorable Q2 performance has not deterred Saylor as he reassured that the firm has no plans to change its BTC strategy.

“We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 bitcoins. Going forward, we intend to continue to deploy additional capital into our digital asset strategy.”

It’s worth noting that the company has not sold any of its BTC, meaning that the losses are only on paper and are not realized.

MicroStrategy and Bitcoin: A Historic Year

As mentioned above, the love story between the NASDAQ-listed company and the primary cryptocurrency began in the summer of 2020 when the firm announced its first purchase. It came after in-depth research of suitable assets in times of economic uncertainty, as Saylor explained later.

Since then, the organization has used every possible chance to buy more – from relatively smaller purchases of $10 million to whopping amounts of $1 billion at once.

Saylor and the company launched BTC-oriented events for corporations and retail users, MicroStrategy became a node on the Bitcoin network, and non-employee executives started receiving funds in the cryptocurrency instead of cash. Let’s not forget that bitcoin became the company’s treasury reserve asset.

That last part is what grasped the attention of many as it was quite revolutionary at the time. One popular crypto analyst going by the Twitter handle ecoinometrics highlighted that event in a recent chart showing the performance of BTC, MicroStrategy’s stocks, and Nasdaq Composite in that timeframe. As the graph below demonstrates, the first two have significantly outperformed the stock market index.

Source: Crypto Potato

Crypto Price Analysis & Overview July 30th: Bitcoin, Ethereum, Ripple, Binance Coin, and Solana

Bitcoin

Bitcoin saw an impressive 20% price hike this week as it reached the $40K resistance level. The cryptocurrency penetrated above a descending wedge formation last Thursday and continued above the 20-day MA level last Friday.

Since breaking the wedge, BTC surged higher inside an ascending price channel as it broke the 50-day MA level for the first time since May and continued to hit the $40k resistance. It did spike above $40K, reaching $40,500 (bearish .382 Fib) but was unable to close a daily candle above the coveted level. The resistance there is further bolstered by the 100-day MA.

Since then, BTC rolled over and broke beneath $39,000 today. As a result, BTC is now trading below the ascending price channel.

Looking ahead, if the sellers push lower, the first support lies at $38,000. This is followed by $37,000, $36,620, $35,000, $34,710 (50-day MA), $34,000 (20-day MA), and $33,520.

On the other side, the first resistance lies at $39,500. This is followed by $40,000 (100-day MA), $40,500 (bearish .382 Fib), $42,000 (January 2021 highs), and $44,750 (200-day MA).

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BTC/USD Daily Chart. Source: TradingView.
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BTC/USD 4-Hour Chart. Source: TradingView.

Ethereum

Ethereum witnessed a 15.1% price hike this week as it reached as high as $2450. It penetrated the 200-day MA last Friday as it broke back above $2000. From there, ETH continued above the 50-day MA and pushed higher to reach the resistance at $2400.

There, ETH struggled to close a daily candle above a falling trend line that dates back to mid-May. As a result, ETH has now rolled over and is currently trading at the support provided by a short-term rising trend line, seen on the 4-hour chart.

Looking ahead, if the sellers break the trend line, the first support lies at $2300. This is followed by $2250 (.236 Fib), $2200, $2150 (.382 Fib, 200-day MA & 50-day MA), $2070 (.5 Fib), and $2000.

On the other side, the first resistance lies around $2400 (the falling trend line). Above this, resistance is expected at $2440 (1.272 Fib Extension), $2530 (1.414 Fib Extension & 100-day MA), $2600, and $2726 (bearish .382 Fib Retracement).

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ETH/USD Daily Chart. Source: TradingView.
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ETH/USD 4-Hour Chart. Source: TradingView.

Against BTC, ETH continues its consolidation inside a symmetrical triangle formation. The coin hit resistance at the upper angle of the triangle last Friday and dropped lower from there until finding support at the lower angle on Wednesday at 0.0573 BTC.

It has since rebounded from there and is now testing the 20-day MA level above 0.06 BTC. A breakout is likely soon as the market is quickly approaching the apex of the triangle.

Looking ahead, if the bulls break above the 20-day MA, the first resistance lies between 0.0616 BTC and 0.062 BTC – the 50-day MA and the upper angle of the triangle. Above the triangle, resistance lies at 0.064 BTC (100-day MA), 0.069 BTC (bearish .618 Fib & July highs), and 0.072 BTC.

On the other side, the first support lies at 0.06 BTC. This is followed by 0.058 BTC (.786 Fib & lower angle of the triangle), 0.056 BTC, and 0.0541 BTC. Finally, added support lies at 0.05 BTC (200-day MA).

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ETH/BTC Daily Chart. Source: TradingView.

Ripple

XRP is up by a solid 21.5% this week, making it the strongest performer in the top 10. It broke above the 20-day MA at $0.6 on Monday and had been surging higher ever since. It went on to break the 50-day MA on Wednesday as it climbed above the $0.7 level.

Yesterday, XRP spiked as high as $0.782 (bearish .236 Fib) but could not overcome this level. In addition, the 200-day MA further bolstered the resistance here. As a result, XRP rolled over today and is now trading around $0.72.

Looking ahead, the first support lies at $0.7. This is followed by $0.673 (50-day MA), $0.62 (20-day MA), $0.6, and $0.556.

On the other side, the first resistance is located at $0.78 (bearish .236 Fib & 200-day MA). This is followed by $0.8282 (2020 high), $0.9, $0.95 (100-day MA), and $1.00.

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XRP/USD Daily Chart. Source: TradingView.

XRP is also performing well against BTC after bouncing from the support at 1600 SAT on Wednesday. There, it found support at the lower angle of a short-term descending price channel that it has been trading inside since the start of July.

The break above 1800 SAT on Wednesday allowed XRP to break the price channel and put XRP above the 20-day MA. Since then, XRP has pushed higher but is struggling to break 1900 SAT (July 2020 low).

Looking ahead, above 1900 SAT, the first resistance lies at 1950 SAT (50-day MA). This is followed by 2000 SAT, 2120 SAT (bearish .236 Fib), and 2300 SAT (100-day MA).

On the other side, the first support lies at 1800 SAT (20-day MA). This is followed by 1740 SAT (200-day MA), 1660 SAT, and 1600 SAT.

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XRP/BTC Daily Chart. Source: TradingView.

Binance Coin

BNB is up by a small 5.3% from where it was trading last Friday as it sits at $310. The cryptocurrency was beneath $300 at the start of the week but eventually managed to push above it during the BTC push higher.

BNB is trading inside a symmetrical triangle pattern and recently hit the upper angle of this pattern today at $325. A breakout of this triangle would be needed for a bullish push toward the June highs.

Looking ahead, the first support lies at $305 (.786 Fib & 20-day MA). This is followed by $300, $275 (lowe angle of the triangle), $244 (.886 Fib), and $225 (June lows).

On the other side, the first resistance lies at $325 (upper angle of the triangle). This is followed by $350, $288 (bearish .382 Fib), and $400 (100-day MA).

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BNB/USD Daily Chart. Source: TradingView.

Against BTC, BNB is struggling after setting a new two-month-low this week at 0.0077 BTC. The coin dropped beneath a symmetrical triangle pattern at the start of the week and continued to plummet as the week progressed.

It has since rebounded from the July lows and is attempting to break the resistance at 0.008 BTC again.

Looking ahead, the first support lies at 0.0077 BTC. This is followed by 0.0075 BTC (.618 Fib), 0.007 BTC (200-day MA), 0.00675 BTC (May lows), and 0.0061 (.786 Fib).

On the other side, the first resistance above 0.008 BTC lies at 0.0085 BTC. This is followed by 0.009 BTC (50-day MA), 0.0096 BTC, and 0.01 BTC.

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BNB/BTC Daily Chart. Source: TradingView.

Solana

SOL is up around 10% this week as the coin attempts to break resistance at the 50-day MA level. It bounced from $26.30 at the start of the week and battled to break the 20-day MA at around $28.

The break above the 20-day MA finally came yesterday as SOL surged above $30. However, it is now battling the 50-day MA resistance that is bolstered by the upper angle of a short-term triangle pattern.

Looking ahead, if the bulls can break the 50-day MA at $32 and climb above the triangle, the first resistance lies at $34 (bearish .382 Fib Retracement). This is followed by $36 (100-day MA), $38.60 (bearish .5 Fib), and $40.

On the other side, the first support lies at $30. This is followed by $28.88 (.382 Fib), $28 (20-day MA), $26.30 (.618 Fb), and $25 (200-day MA & lower angle of the triangle).

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SOL/USD Daily Chart. Source: TradingView.

Against BTC, SOL has been in a steady decline this week but found support at the June lows around 0.0007 BTC yesterday.

SOL rebounded at this support yesterday and hit the 20-day MA at 0.000831 BTC today.

Looking ahead, if the buyers can break the 20-day MA, the first strong resistance lies at 0.0009 BTC (bearish .382 Fib, 100-day MA & 50-day MA). This is followed by 0.001 BTC (bearish .5 Fib), 0.00107 BTC (bearish .618 Fib), and 0.0011 BTC.

On the other side, the first support lies at 0.0007 BTC. Beneath this, support lies at 0.00061 BTC (May low), 0.000581 BTC (200-day MA), 0.00053 BTC (downside 1.618 Fib Extension), and 0.0005 BTC.

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SOL/BTC Daily Chart. Source: TradingView.

Source: Crypto Potato

Local-Top Indicators Flash for Bitcoin: 3rd Biggest Whale Sent 3,000 BTC to Coinbase

BTC’s recent 9 daily candle streak to the upside has been very impressive. We have been tracking the third-largest BTC whale wallet and found interesting activity and signals. The whale entity, at one point, held over 116,841 BTC. Its current total BTC holdings stand at 113,841.

The recent sales from this address since April 2021 have accurately marked local tops in BTC, as shown in the chart below.

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Chart by TradingView

This doesn’t necessarily mean that bitcoin’s price will crash. The activity has shown that this entity strategically sells BTC after large rallies to take profit, rebalance, and buy back on dips. Ever since this wallet was created, the total amount of BTC holding has increased month after month.

In the below chars, the vertical red boxes indicate the time when the whale entity was transferring BTC out of his account to exchanges.

Onchain Signals

The first signal is the All Exchange Reserves metric trending higher. This means investors are depositing BTC onto exchanges causing the BTC reserves to increase. This is a warning signal for BTC, especially if prices have seen a large rally.

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Chart by CryptoQuant

The second signal is the All Exchange Netflow Metric trending higher. This metric takes the difference between exchange inflows and exchange outflows. If the difference is positive, it means there is more BTC flowing into exchanges, signaling the intent to sell. A negative difference is bullish as more BTC is flowing out of exchanges, signaling more buying pressure.

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Chrat by CryptoQuant

The third signal is a positive Funding Rate. A positive funding rate above zero means that investors holding long positions on derivative exchanges have to pay shorts to maintain their position. An increasing funding rate, especially if positive for an extended period of time, increases the risk of a local top and pullback.

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Chart by CryptoQuant

Technical Signals

The first technical signal is the Stochastic RSI, which is a more sensitive indicator derived from the relative strength index. When the Stochastic RSI is above 80, it signals price is overbought.

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Chart by TradingView

The second technical signal is the 4-hour TD Sequential indicator flashing the 9th candle. This means BTC rallied higher for 9 consecutive candles in a row on the 4-hour chart, signaling the risk of a local top or pullback.

The third technical signal is the 4-hour relative strength index hitting overbought conditions such as a reading above 70.

The fourth technical signal flashes a warning when the 4 hour and daily chart is at or above the upper band on the Bollinger Band. The Bollinger Band measures standard deviations of price movement from a specified moving average.

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Chart by TradingView
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Chart by TradingView

In aggregate, when the above-listed indicators and metrics are flashing signals, it signals the risk of a local top or incoming pullback for BTC. This does not mean BTC will crash, it just means the price is overheated, and in particular, the whale entity could be looking to sell, which will likely prevent the price from rising in the near term. It’s important to factor in other forms of analysis to ensure a more accurate signal.

As previous activity has shown, the whale entity has always bought back its position after selling and continues to net accumulate BTC over time. The Onchain and Technical signals near-term risk to the downside, but the long-term trend remains firmly bullish.

Source: Crypto Potato