Crypto winters find a way to quickly plunge even the busiest cryptocurrency supporters into bears. Bitcoin managed to climb above $23,000 recently. However, some experts argue that this is a false rise. Here are the next prospects…
Bitcoin (BTC) rise different this time?
The pointed message “This time is different” was presented by the nicknamed Twitter user Trader XM, who posted the chart below outlining why BTC is poised to rise. As highlighted in the chart above, BTC price did not retest the low range despite retesting the high range four times. This shows that buyers are now stronger than sellers. In response to the post from Trader XM, Twitter user Justiinape replied, “$27k – $28,000 looks close.” “Let’s enjoy these levels before hibernation,” Trader XM said.
The next major resistance is $27,100.
Further evidence that BTC could go higher was provided by con chain data firm Whalemap, which posted the chart below highlighting the lack of demand to buy between $23,000 and $27,000. Whalemap used the following statements:
$27,100 should be the first resistance on our way. There is a huge gap in supply between current prices and $27,000.
Posting the chart below showing the impact of Bitcoin’s move above $23,000 on futures traders, cryptocurrency analyst Dylan LeClair is proof that crypto traders are drifting into an extreme bearish outlook. As highlighted in the chart, a large amount of Bitcoin open interest was opened between June 15 and July 15. These traders now find themselves on the losing side of the trade. LeClair used the following statements:
There are currently tens of thousands of dollars worth of BTC open interest underwater.
Have you seen the bottom level?
While reversing Bitcoin’s course and heading down once again remains a possibility, the current momentum suggests further upside in the short term. The overall cryptocurrency market cap is currently $1,055 trillion and Bitcoin’s dominance rate is 42.1 percent. Mark Newton, head of global technical strategy at Fundstrat Global Advisors, is now confident that Bitcoin has bottomed at $17,600. Momentum looks “positively sloping” in the near term, according to the expert.
#Bitcoin's breakout “gives some added confidence that lows to this decline might finally be in place. .. Momentum is positively sloped near-term and not overbought, and near-term gains up to $25,230, then $28k look likely before any backing and filling.” – @MarkNewtonCMT pic.twitter.com/aKEmQMUACQ
— Carl Quintanilla (@carlquintanilla) July 19, 2022
The analyst believes that the $25,320 level will be enough to regain the bullish sentiment. In fact, Newton adds that the cryptocurrency could recover the $28,000 level “before any support and filling.” According to data provided by CoinGecko, Bitcoin is still about 66 percent below its record high.
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