Bitcoin (BTC) closed above $ 41,000 in a bullish engulfing candle in July that dramatically reverses its previous downtrend.
In an August 1 tweet, investor and entrepreneur Alistair Milne joined many celebrating a classic return to the form of BTC price action.
Bitcoin refuses to turn bearish
After seeing three consecutive monthly red candles, BTC / USD held on to late gains and hit a month-end that few expected.
Despite the decline to $ 29,000, the bears were unable to stay in the driver’s seat towards the end of July as resistance levels fell and sentiment improved.
“Bullish engulfing on the monthly chart for Bitcoin,” summarized Milne.
A bullish engulfing pattern is a chart pattern that forms when a small red candle is followed by a large green candle. H. July, the body of which completely covers or engulfs the body of the previous candle (June).
The climb – and its stamina – were so surprising that even seasoned hodlers seem confused about what to do next.
On-chain data shows that some long-term holders (LTHs) actually sell when BTC / USD rises, which analyst Lex Moskovski believes corresponds to the “disbelief” phase of a classic market cycle.
Moskovski highlighted the long-term spending rate of return (LTH-SOPR) indicator, which this weekend hit its lowest level in 2021.
SOPR studies the value of coins moved over a period of time to get an idea of the profitability of the coins sold. A downtrend towards the neutral 1 value, explains host Glassnode, suggests that profitability is low among the coins in question.
“Some long-term Bitcoin holders are selling with minimal profit in this upswing, as indicated by LTH-SOPR, which hit this year’s low two days in a row,” commented Moskovski.
“That’s one of the reasons we’re still at 41,000. Disbelief.”
The bulls meanwhile continue to look for triggers that could finally send BTC / USD past the USD 42,000 resistance after running two tests in the past 24 hours.
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Behind that, as Cointelegraph found, there is little in the way of up to $ 45,000 and $ 47,000.
Equally excited about Saturday’s uptrend was PlanB, creator of the stock-to-flow pricing model family, who described the Bitcoin deal in July as a “clockwork” recovery.
#bitcoin July closing price $ 41,490 … it bounced off the lows like clockwork pic.twitter.com/xZIlbaBBqI
– PlanB (@ $ 100 trillion) August 1, 2021
Stock-to-flow, while currently asking for a Bitcoin price of nearly $ 100,000, remains in effect, with PlanB having a minimum follow-up requirement for August of $ 47,000.