Bitcoin hits $ 40,000 after 6 weeks, but activity in the chain is “a little bearish”

Bitcoin (BTC) hit $ 40,370 on July 26, when a major price milestone returned on a solid day of gains.

1-hour candlestick chart for the BTC / USD (Bitstamp) pair. Source: TradingView

The price of BTC is seeing a daily gain of almost 20%

Data from Cointelegraph Markets Pro Yes TradingView showed that The BTC / USD pair hit $ 40,400 before consolidating near that level on Monday afternoon.

The pair had held previous night’s gains all day, hovering around $ 38,000 before rallying again after Wall Street opened.

Bitcoin hits $ 40,000 after 6 weeks, but activity in the chain is “a little bearish”
Bitcoin hits $ 40,000 after 6 weeks, but activity in the chain is “a little bearish”

Amid the understandable excitement of investors waiting for the increase to finally resume, Cointelegraph staff said, Michaël van de Poppe, warned against being too optimistic at the current level.

“Bitcoin continues to show strength, although sentiment becomes euphoric again as it approaches the resistance area.” wrote just before BTC hit $ 40,000.

“The trend has changed as the market made a higher high. I think we’ll still see an HL at $ 34,500 to $ 36,000 for the next several weeks unless it goes above $ 41,000.”

This would mean a deviation from a trading range that has been set for more than two months.

Buy and sell positions in the BTC / USD pair (Binance). Source: Material Indicators / Twitter

A look at the support and resistance levels on Binance at the time of writing showed relatively little buying activity above $ 36,000. with the $ 41,000 level, the sellers are still in control.

Material indicators, Providing Binance data, added that it is important to consider moving averages when trying to understand current moves.

Little activity in the chain can hold bulls back

While Monday’s gains were impressive, Van de Poppe wasn’t the only one calling for a pragmatic valuation of the entire Bitcoin market.

In the latest edition of your weekly newsletter “The week in the chain”, Data analysis company Glassnode, He also stressed the need for chain activity to catch up with price movements in order to keep the market going.

“In general, on-chain activity is still a bit bearish and remains calm,” wrote the analysts.

“In this case, the bitcoin network’s capacity may hold the course. Ideally, renewed volatility and constructive price actions reactivate the demand for block space.

The last time Bitcoin flirted at the $ 40,000 mark was during a brief revision from lower levels in mid-June.

Similar Posts