October 2020 Déjà vu? Bitcoin pullback at $ 38,000 has left traders at odds over the next step

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The broader cryptocurrency market entered a period of consolidation on July 27th, after Bitcoin (BTC) hit a brief spike above $ 40,000 the day before, which helped spark a rally across the market and give the market a new feel for To give optimism.

Data from Cointelegraph Markets Pro and TradingView show that a noon attempt by the bulls to push BTC prices back above $ 40,000 was rejected, causing the price to drop to $ 37,500.

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BTC / USDT 4-hour chart. Source: TradingView

While Tuesday’s price drop could suggest that Monday’s rally was just a brief squeeze, others point to the rising Grayscale Bitcoin Trust (GBTC) premium, now at -5.88%, its highest level in months lies, suggesting that the institutions are back on. put more BTC price up.

Bitcoin bulls are fighting to restore the uptrend

Rumors that Amazon would accept cryptocurrency payments from 2021 helped spark Monday’s market-wide rally, which the company later officially denied.

However, as the pseudonymous independent market analyst Rekt Capital points out, Bitcoin’s price chart shows a fractal pattern that is similar to the price development in October 2020, just before BTC price began its run to a new all-time high.

If a similar pattern plays out in the current market, the price of Bitcoin will continue the upward trend initiated by the Amazon rumors.

Not all of the available data suggests the upward momentum will continue, however, as pointed out by Jarvis Labs analyst and co-founder Ben Lilly, who has been monitoring the chain’s data to get a deeper look at the latest pump, particularly with Ethereum’s Londoner Hard fork slated for August 4th.

Lilly said

“Onchain activity and demand did not show up. Combine this with Amazon news as fakes and shorts are going straight.

An example of bearish tendencies, however, was provided by the pseudonymous Twitter user Bear Wolf, who only saw developments on Monday as a short squeeze amid a broader bear market.

“19K is still my goal for the end of the bear market,” he wrote. Dead Cat Bounce to 46K (Short Squeeze). TA void if we pump to 50K and find support >> TOP

Related: Senator Warren urges Treasury Secretary Yellen to tackle the rising crypto threats

Altcoins return profits

A large percentage of the gains posted in the altcoin market on Monday were returned on Tuesday as the euphoria from the Amazon rumors subsided.

Daily performance of the cryptocurrency market. Source: Coin360

Dogecoin (DOGE) and Solana (SOL) were the two hardest hit tokens in the top 20, with losses of 10% and 10.8% respectively, while Monday’s top performers Strike (STRK) and Venus (XVS) were both down 16% fell. .

A pair of 30% gains from Axie Infinity (AXS) and MyNeighborAlice (ALICE) marked the best performers of the day, while blockchain-based identity management solution Civic (CVC) saw prices rise 20%.

The total market cap of the cryptocurrency is now $ 1.488 trillion and the dominance of Bitcoin is 47.8%.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.