Bitcoin has been rejected several times after a push north of the $ 40,000 mark. At the time of writing, BTC is trading at $ 36,621, up 3.2% on the daily and 31.9% on the weekly chart.
BTC with a strong rally in the daily chart. Source: BTCUSD Tradingview
Sentiment turns bullish as Bitcoin continues to tackle major resistance at key levels. In addition, data from CryptoQuant indicates bullish indicators.
Despite a surge in BTC inflows into exchange platforms, the bulk of sales appear to be being absorbed by heavy buyers. As a result, the Bitcoin spot reserves on the exchanges are in a downtrend, as the following chart shows.
CryptoQuant claims this is the “highest level of outflow” since Bitcoin tested the lows of its current range of around $ 29,000 and the highs of $ 40,000. Hence, it can be assumed that the price of BTC could find enough support to rise again to previous highs.
The first pullback after breaking $ 30,000 earlier this year saw the same high in outflows on the exchanges. We have to see how the price breaks through new resistance up to the last historical high (…)
This data also suggests that price could regain previous highs without “big demand,” CryptoQuant said. There were similar BTC outflows in mid-July, but the report attributed it to an internal transaction. The recent surge is even higher than the previous outflow, suggesting it
Obviously big players who surrendered to the liquidity of bears betting on a break in support at $ 30,000.
Bitcoin will see $ 50,000 in the coming weeks?
A separate report from QCP Capital highlighted that the latest bullish price action occurred despite e-commerce giant Amazon denying the rumors about its alleged crypto payments program. In addition to the high BTC outflows, there has been an increase in flow in the options market.
This spike was seen in the days leading up to the big rally that brought BTC from the low $ 30,000 to its current level. As QCP Capital said, there has been a wave of call buying with over 2,000 BTC placements at 42,000 and 44,000 three-week strikes.
In other words, some investors could bet on more appreciation in the coming weeks. This could be additional fuel for Bitcoin to break out of its current pattern. QCP Capital added:
However, this time the volatility market reacted very differently with signs of upward stress. Unlike the previous rally, where only the front-end folks rose while the back-end remained stable, this time the back-end folks rose higher in line with the rise in the front-end vols.
In the short term, the company is forecasting more resistance at current levels with a potential TD 9 sell-signal on July 29th. Over the weekend, the month-end options could push Bitcoin to $ 40,000 and $ 42,000. If so, QCP Capital expects these levels to be held with a possible expansion to $ 50,000.
Source: QCP Capital
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