Key highlights:
- BTC surged another strong 6% today as the cryptocurrency reclaims $40,000
- The cryptocurrency found support at the .382 Fib Retracement around $37.5K and rebounded
- BTC is now up 18% on the month
Bitcoin price
$40,900
Key BTC resistance levels
$40,000, $40,560, $41,000, $42,000, $42,560
Key BTC support levels
$40,000, $38,000, $37,400, $36,660, $35,920
*Price at the time of publication
After a brief retracement this week, Bitcoin has finally found support and rebounded to reclaim the $40K level. Since the end of July, the cryptocurrency had been trading inside an ascending price channel, which allowed it to climb into resistance at $42,556. From there, BTC went on to break beneath the channel but would eventually find support at $37,500, provided by a .382 Fib Retracement level.
A clearance above the early-August high would kick start a bull-run that should help BTC start to make its way back toward the May highs at around $60K.
One of the main fundamental metrics for Bitcoin this week has been the considerable exodus of BTC from exchanges. Investors are seemingly removing their BTC from centralized exchanges, most likely to keep their funds in cold storage. This means that they are not planning on selling their BTC anytime soon and intend, to hold for the longer term. Otherwise, they would keep their BTC on the exchange for an easy sale.
Data from Glassnode shows that the total balance of Bitcoin on all exchanges has dropped considerably over the past week:
In fact, the actual percentage of the supply of BTC on exchanges has now hit the 2021 lows at around 13.2%:
Despite the recent sideways movement over the past two months for BTC, it seems that users have still continued to enter the network, allowing for network growth to continue through the consolidation. Will Clemente, popular on-chain analyst, Tweed that the number of new users coming into the Bitcoin network continues to reach new all-time highs:
The number of new users coming on the Bitcoin network continues to reach new all time highs. pic.twitter.com/yttPlhJBPd
— Will Clemente (@WClementeIII) August 4, 2021
In other news, it seems that Google is starting to relax some of its restrictions, allowing some cryptocurrency advertisements to be run on its platform. The technology giant had banned crypto-related advertising in June 2018, during the great ICO mania.
The new relaxation of restrictions will now allow advertisers to run crypto-related businesses and services so long as they meet a set of conditions. The main condition is that advertisers must be registered with FinCEN as a Money Services Business or must be a federal or state-chartered bank entity.
Although the restrictions are still in place for everybody else, the loosening of restrictions is a good signal that Google is starting to warm back up to the cryptocurrency industry.
BTC now holds a total market cap value of around $765 billion.
Bitcoin price analysis
Daily chart:
4-hour chart:
What has been going on?
The daily chart is a great representation of where the market is right now as it sits near two-month highs. The cryptocurrency was trading inside consolidation over the past three months as it traded within the confines of a descending wedge formation.
This wedge caused the price of Bitcoin to driven as low as $30,000 and even caused the coin to spike beneath the level. However, descending wedges are typically strong bullish technical patterns and Bitcoin would eventually break out toward the upside of this pattern at the end of July.
Since breaking the pattern, BTC would then surge inside an ascending price channel, which allowed the cryptocurrency to rise as high as $42,555 on the first day of August.
Unfortunately, it would roll over from there and would break beneath the ascending price channel. This is best seen on the 4-hour chart.
Since breaking beneath the ascending price channel, BTC would retrace into the .382 Fib Retracement level and rebound from there on Wednesday. It has since surged higher to reclaim $40K as it sits at around $40,500.
Bitcoin is now in a very strong position to kickstart a rally higher that should at least take it toward $50K and hopefully back toward the all-time high prices. The market would need to clear the resistance at $42,555 for traders to feel confident that the market is ready to move higher.
Nevertheless, BTC has now made a higher and a subsequent higher low. So long as the support of around $37,500 is maintained, BTC is in a promising position for the bulls in the market.
Bitcoin price short-term prediction: Neutral
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a closing candle beneath $30K would turn the market bearish again.
If the sellers do push lower again, the first level of support lies at $40K. This is followed by the support at $37,500 (.382 Fib Retracement). Beneath this week’s support, added support is located at $36,660, $35,920 (.5 Fib Retracement), $34,7000, and $34,000.
Additional support is also expected at $32,000, $31,500, and $31,000.
Where is the resistance toward the upside?
On the other side, if the buyers push higher, the first resistance lies at $42K. This is immediately followed by the August high at $42,555. Beyond the August high, resistance lies at $44,190 (bearish .5 Fib Retracement), $45,000, and $46,090 (1.272 Fib Extension).
Additional resistance is expected at $47,820 (bearish .618 Fib Retracement), $50,000, and $50,660 (1.618 Fib Extension).
Keep up-to-date with the latest Bitcoin Price Predictions here.
https://cryptozine.xyz/bitcoin-price-analysis-btc-falls-beneath-ascending-price-channel-after-overbought-conditions-met-higher-low-next/
- BTC surged another strong 6% today as the cryptocurrency reclaims $40,000
- The cryptocurrency found support at the .382 Fib Retracement around $37.5K and rebounded
- BTC is now up 18% on the month
Bitcoin price
$40,900
Key BTC resistance levels
$40,000, $40,560, $41,000, $42,000, $42,560
Key BTC support levels
$40,000, $38,000, $37,400, $36,660, $35,920
*Price at the time of publication
After a brief retracement this week, Bitcoin has finally found support and rebounded to reclaim the $40K level. Since the end of July, the cryptocurrency had been trading inside an ascending price channel, which allowed it to climb into resistance at $42,556. From there, BTC went on to break beneath the channel but would eventually find support at $37,500, provided by a .382 Fib Retracement level.
A clearance above the early-August high would kick start a bull-run that should help BTC start to make its way back toward the May highs at around $60K.
One of the main fundamental metrics for Bitcoin this week has been the considerable exodus of BTC from exchanges. Investors are seemingly removing their BTC from centralized exchanges, most likely to keep their funds in cold storage. This means that they are not planning on selling their BTC anytime soon and intend, to hold for the longer term. Otherwise, they would keep their BTC on the exchange for an easy sale.
Data from Glassnode shows that the total balance of Bitcoin on all exchanges has dropped considerably over the past week:
In fact, the actual percentage of the supply of BTC on exchanges has now hit the 2021 lows at around 13.2%:
Despite the recent sideways movement over the past two months for BTC, it seems that users have still continued to enter the network, allowing for network growth to continue through the consolidation. Will Clemente, popular on-chain analyst, Tweed that the number of new users coming into the Bitcoin network continues to reach new all-time highs:
The number of new users coming on the Bitcoin network continues to reach new all time highs. pic.twitter.com/yttPlhJBPd
— Will Clemente (@WClementeIII) August 4, 2021
In other news, it seems that Google is starting to relax some of its restrictions, allowing some cryptocurrency advertisements to be run on its platform. The technology giant had banned crypto-related advertising in June 2018, during the great ICO mania.
The new relaxation of restrictions will now allow advertisers to run crypto-related businesses and services so long as they meet a set of conditions. The main condition is that advertisers must be registered with FinCEN as a Money Services Business or must be a federal or state-chartered bank entity.
Although the restrictions are still in place for everybody else, the loosening of restrictions is a good signal that Google is starting to warm back up to the cryptocurrency industry.
BTC now holds a total market cap value of around $765 billion.
Bitcoin price analysis
Daily chart:
4-hour chart:
What has been going on?
The daily chart is a great representation of where the market is right now as it sits near two-month highs. The cryptocurrency was trading inside consolidation over the past three months as it traded within the confines of a descending wedge formation.
This wedge caused the price of Bitcoin to driven as low as $30,000 and even caused the coin to spike beneath the level. However, descending wedges are typically strong bullish technical patterns and Bitcoin would eventually break out toward the upside of this pattern at the end of July.
Since breaking the pattern, BTC would then surge inside an ascending price channel, which allowed the cryptocurrency to rise as high as $42,555 on the first day of August.
Unfortunately, it would roll over from there and would break beneath the ascending price channel. This is best seen on the 4-hour chart.
Since breaking beneath the ascending price channel, BTC would retrace into the .382 Fib Retracement level and rebound from there on Wednesday. It has since surged higher to reclaim $40K as it sits at around $40,500.
Bitcoin is now in a very strong position to kickstart a rally higher that should at least take it toward $50K and hopefully back toward the all-time high prices. The market would need to clear the resistance at $42,555 for traders to feel confident that the market is ready to move higher.
Nevertheless, BTC has now made a higher and a subsequent higher low. So long as the support of around $37,500 is maintained, BTC is in a promising position for the bulls in the market.
Bitcoin price short-term prediction: Neutral
Bitcoin still remains neutral in the short term and would have to break above resistance at $42,000 to start to turn bullish again. On the other side, a closing candle beneath $30K would turn the market bearish again.
If the sellers do push lower again, the first level of support lies at $40K. This is followed by the support at $37,500 (.382 Fib Retracement). Beneath this week’s support, added support is located at $36,660, $35,920 (.5 Fib Retracement), $34,7000, and $34,000.
Additional support is also expected at $32,000, $31,500, and $31,000.
Where is the resistance toward the upside?
On the other side, if the buyers push higher, the first resistance lies at $42K. This is immediately followed by the August high at $42,555. Beyond the August high, resistance lies at $44,190 (bearish .5 Fib Retracement), $45,000, and $46,090 (1.272 Fib Extension).
Additional resistance is expected at $47,820 (bearish .618 Fib Retracement), $50,000, and $50,660 (1.618 Fib Extension).
Keep up-to-date with the latest Bitcoin Price Predictions here.
https://cryptozine.xyz/bitcoin-price-analysis-btc-falls-beneath-ascending-price-channel-after-overbought-conditions-met-higher-low-next/
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