The price of Bitcoin (BTC), the top-rated cryptocurrency by market cap, rose to over $ 9,300 on July 21 for the first time in over a week. After a low volatility range, traders appear to be cautiously optimistic in the short term.
Bitcoin has been in a relatively narrow range between $ 9,000 and $ 9,250 since late June. It was difficult for him to see a significant price movement that led to a volume decline. After a rapid surge from $ 9,150 to over $ 9,300, traders expect volatility to increase immediately.
The price increase coincided with a recovery in the US stock market, which was driven by a new economic round. The United States Treasury Secretary, Steven Mnuchin said a $ 1 trillion stimulus deal is being worked on.
Key cryptocurrency performance over the past 24 hours. Source: Coin360.io
Some traders say that A breakout is likely to occur, but the volume decrease is worrying.
Several technical analysts say Bitcoin’s recent rally could lead to a larger rally in the short term. Bitcoin faces major resistance levels of $ 9,550 and $ 9,800, and BTC has had significant declines in both areas before.
Crypto trader Philip Swift noticed this Bitcoin’s two-month range from May was above the 200-day moving average (MA), indicating that Bitcoin’s uptrend may be intact.
The dealer said::
“A promising little bomb this morning. I suspect this will be the week when we will finally break out of the dreaded area. “
Bitcoin’s reach has been above the 200-day moving average since May. Source: Philip Swift
Arthur Hayes, the CEO of BitMEX, was also enthusiastic about Bitcoin’s small rally. Hayes said BTC woke up from “his dream”, referring to the low volatility in the past week.
Arthur Hayes tweets about Bitcoin’s first spike in over a week. Source: Arthur Hayes Twitter
Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, hinted that Bitcoin is cautiously bullish. Said:
“We have our upward and upward movement here as the market shows strength. I don’t think $ BTC is accelerating as it is still jumping.”
Binance futures data show as Most platform traders are mostly long-term optimistic about Bitcoin and Ether (ETH).
Datamish data suggest that essentially There are more long contracts than short contracts across the Bitcoin futures market also. Long-term amounts are approximately 22,496 BTC worth approximately $ 209 million. In contrast, the shorts are only worth 5,555 BTC and less than $ 52 million.
The case of a fake instead of an expanded Bitcoin boost
Although the 200-day MA technically suggests an upward trend, historical data show that it could easily decompose below it.. The previous peaks observed in July 2019 and February 2020 were both rejected above the 200-day MA.
Santiment data also show that bitcoin volume has decreased in recent weeks. If an upward trend coincides with a falling volume, this could indicate a wrong increase.
The Santiment researchers they write::
“Overall BTC trading volume continues to decrease, and with today’s focus on altcoins that Bitcoin’s trading volume reached $ 12.25 billion a day on Saturday, it was the lowest for a day since October 5, 2019 (at least 9.5 months). “
Bitcoin’s trading volume continues to decrease. Source: Santiment
The market remains mixed as BTC fights into the new week. Technical indicators and macroeconomic fundamentals such as the bitcoin hash rate and low currency inflows indicate an upward trend. However, the low BTC volume in the past two months remains a variable.
Do not stop reading: