Given that the price of Bitcoin has been lingering above the $17K\u2013$20K range over the past few weeks, Bitcoin\u2019s sharp downturn has come to an end. The price is currently retesting the $23K resistance level after being rejected three times from the $20K support area.<\/p>\n
Bitcoin Advocates Rejoice<\/p>\n
The market flashed its first significant relief rally in at least a month, and crypto enthusiasts rejoiced at the sight of green on July 19 as the months of \u201cdown only\u201d price action finally came to a stop.<\/p>\n
According to TradingView data, Bitcoin\u2019s (BTC) breakthrough over resistance at $23,000 to reach a daily high of $23,447\u2014its first appreciable move above the 200-week moving average\u2014is largely responsible for the renewed optimism.<\/p>\n
The $23K level is also experiencing extra opposition from the 50-day moving average. A further retest of the $20K support level and perhaps a deeper negative continuation are anticipated in this situation because it appears as though these two points are currently rejecting the price\u2019s move downward. The bulls, though, seem keen to seize the level.<\/p>\n\n
BTC\/USD barrels towards $24k. Source: TradingView<\/p>\n
In order to assess the likelihood of a negative reversal, the price action on the lower timeframes should be closely monitored throughout the course of the following few days. A rally into the $30K supply zone is the next move, especially if a bullish breakthrough happens above the $23K-$24K range.<\/p>\n
While many have predicted a rise to the mid-$30,000 area, several analysts have expressed concern that it might just be another fakeout pump.<\/p>\n
\u201cWeekly Candle Close Above $22,800\u201d<\/p>\n
Rekt Capital, a cryptocurrency analyst, posted the following chart with the comment that \u201cFor the first time in weeks, BTC is putting in a decent effort to try to reclaim the 200-week MA as support.\u201d The analyst has been paying close attention to the move back above the 200-week MA.<\/p>\n
Related Reading |\u00a0Mid Cap Crypto Coins Lead In July, Best Way To Weather The Winter?<\/p>\n
In recent weeks, the 200-week MA has received a lot of attention since it has traditionally acted as a dependable bear market indicator that has given insight into when a bottom has been set.<\/p>\n
As per Rekt Capital,<\/p>\n
\u201cBTC needs to Weekly Candle Close above $22800 to successfully confirm a reclaim of the 200-week MA as support.\u201d<\/p>\n
Miners Capitulate<\/p>\n
Miners have entered the capitulation phase, who have started to slightly distribute their holdings. The hashrate of Bitcoin has been in a minor downturn following a new all-time high during the previous shakeout, exhibiting the same behavior.<\/p>\n
Within a 24-hour period, cryptocurrency miners removed up to 14,000 bitcoin, each worth $300 million, from their wallets.<\/p>\n
Due to the recent decline in the value of many digital currencies, miners sold their bitcoin holdings.<\/p>\n\n
Source: CryptoQuant<\/p>\n
This minor fall in the hashrate is expected given that Bitcoin\u2019s price is currently approximately 74% off its all-time high and that mining may not be profitable for many miners and pools. But despite the current price correction\u2019s size, the hashrate is still doing fairly well. In the past, the bear market\u2019s ultimate phase has been identified by the capitulation of the miners. Therefore, there is a strong likelihood that Bitcoin will soon reach its long-term bottom and start a fresh uptrend toward higher price levels.<\/p>\n
Related Reading |\u00a0Bitcoin Marks One Month Of Negative Funding Rates, More Decline Incoming?<\/p>\n
Featured image from iStock Photo, charts from TradingView.com and CryptoQuant<\/p>","protected":false},"excerpt":{"rendered":"
<\/p>\n
Given that the price of Bitcoin has been lingering above the $17K\u2013$20K range over the past few weeks, Bitcoin\u2019s sharp downturn has come to an end. The price is currently retesting the $23K resistance level after being rejected three times from the $20K support area.<\/p>\n
Bitcoin Advocates Rejoice<\/p>\n
The market flashed its first significant relief rally in at least a month, and crypto enthusiasts rejoiced at the sight of green on July 19 as the months of \u201cdown only\u201d price action finally came to a stop.<\/p>\n
According to TradingView data, Bitcoin\u2019s (BTC) breakthrough over resistance at $23,000 to reach a daily high of $23,447\u2014its first appreciable move above the 200-week moving average\u2014is largely responsible for the renewed optimism.<\/p>\n
The $23K level is also experiencing extra opposition from the 50-day moving average. A further retest of the $20K support level and perhaps a deeper negative continuation are anticipated in this situation because it appears as though these two points are currently rejecting the price\u2019s move downward. The bulls, though, seem keen to seize the level.<\/p>\n
BTC\/USD barrels towards $24k. Source: TradingView<\/p>\n
In order to assess the likelihood of a negative reversal, the price action on the lower timeframes should be closely monitored throughout the course of the following few days. A rally into the $30K supply zone is the next move, especially if a bullish breakthrough happens above the $23K-$24K range.<\/p>\n
While many have predicted a rise to the mid-$30,000 area, several analysts have expressed concern that it might just be another fakeout pump.<\/p>\n
\u201cWeekly Candle Close Above $22,800\u201d<\/p>\n
Rekt Capital, a cryptocurrency analyst, posted the following chart with the comment that \u201cFor the first time in weeks, BTC is putting in a decent effort to try to reclaim the 200-week MA as support.\u201d The analyst has been paying close attention to the move back above the 200-week MA.<\/p>\n
Related Reading |\u00a0Mid Cap Crypto Coins Lead In July, Best Way To Weather The Winter?<\/p>\n
In recent weeks, the 200-week MA has received a lot of attention since it has traditionally acted as a dependable bear market indicator that has given insight into when a bottom has been set.<\/p>\n
As per Rekt Capital,<\/p>\n
\u201cBTC needs to Weekly Candle Close above $22800 to successfully confirm a reclaim of the 200-week MA as support.\u201d<\/p>\n
Miners Capitulate<\/p>\n
Miners have entered the capitulation phase, who have started to slightly distribute their holdings. The hashrate of Bitcoin has been in a minor downturn following a new all-time high during the previous shakeout, exhibiting the same behavior.<\/p>\n
Within a 24-hour period, cryptocurrency miners removed up to 14,000 bitcoin, each worth $300 million, from their wallets.<\/p>\n
Due to the recent decline in the value of many digital currencies, miners sold their bitcoin holdings.<\/p>\n
Source: CryptoQuant<\/p>\n
This minor fall in the hashrate is expected given that Bitcoin\u2019s price is currently approximately 74% off its all-time high and that mining may not be profitable for many miners and pools. But despite the current price correction\u2019s size, the hashrate is still doing fairly well. In the past, the bear market\u2019s ultimate phase has been identified by the capitulation of the miners. Therefore, there is a strong likelihood that Bitcoin will soon reach its long-term bottom and start a fresh uptrend toward higher price levels.<\/p>\n
Related Reading |\u00a0Bitcoin Marks One Month Of Negative Funding Rates, More Decline Incoming?<\/p>\n
Featured image from iStock Photo, charts from TradingView.com and CryptoQuant<\/p>\n
<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-3725","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=3725"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/3725\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=3725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=3725"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=3725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}