Bitcoin hits $ 40,000 after 6 weeks of absence, but activity in the chain is “somewhat bearish”

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

BTC / USD 1-minute candle chart (Bitstamp). Source: TradingView

Daily wins of BTC price close to 20%

Data from Cointelegraph Markets Pro and TradingView showed BTC / USD hit $ 40,400 before consolidating nearby later in the day.

The pair had held previous night’s gains all day, circling around $ 38,000 before rising further after Wall Street opened.

Amid some understandable excitement from investors waiting for the uptrend to finally resume, Cointelegraph employee Michaël van de Poppe warned against being overly optimistic on current levels.

“Bitcoin is still showing strength, although sentiment becomes euphoric again as it approaches range resistance,” he wrote just before it hit $ 40,000.

“The trend has changed as the market made a higher high. I think we’ll still see an HL at $ 34.5-36,000 for the coming weeks unless it breaks $ 41,000.”

This would be an exit from a trading range that has been in place for over two months.

BTC / USD buy and sell positions (Binance). Source: Material Indicators / Twitter

A look at the support and resistance levels on the major exchange, Binance, at the time of writing, showed relatively little buyer activity above $ 36,000, with $ 41,000 left for sellers.

Material Indicators, which provided the Binance data, added that it was important to consider moving averages when trying to understand current moves.

“Quiet” activities in the chain can put cops off

While the July 26 gains were impressive, van de Poppe wasn’t the only one calling for a pragmatic valuation of the Bitcoin market as a whole.

Related: BTC Price Burns Bears Towards $ 40,000: 5 Things To Watch For Bitcoin This Week

In the latest edition of its weekly newsletter “The Week On-chain”, data analytics company Glassnode also emphasized the need for on-chain activities to keep up with price developments in order to keep the market going.

“Overall, the on-chain activity remains somewhat bearish and remains calm,” wrote analysts.

“Perhaps in this case, the utilization of the Bitcoin network will delay prices. Ideally, renewed volatility and constructive price action will spark demand for block space. If not, this could indicate that a more cautious framework is required in the coming weeks.”

The last time Bitcoin interacted with the $ 40,000 mark was in mid-June on a brief revisit from lower levels.