Bitcoin Price Analysis: BTC Faces Strong Resistance At $39,000

Daily Bitcoin BTC Price Forecast

Last Updated July 28th 2021
2 Min Read
  • The Bitcoin price has flipped several levels to bullish.
  • BTC is on the verge of re-entering $40,000 resistance.

The Bitcoin price crossed the $40,000 psychological level this Monday for the first time in over a month. However, BTC soon managed to settle itself around $37,200. Prior to that, Bitcoin dropped from $34,300 to $29,700. During the drop, BTC managed to:

  • Reverse market momentum from green to red.
  • Flip the 20-day SMA from support to resistance.
  • Reverse the parabolic SAR from positive to negative.

This is what happened after that.

Bitcoin Price Flips Several Crucial Levels To Bullish

The Bitcoin price had 7 straight bullish sessions between July 21 and July 27, during which it jumped from $29,800 to $38,000. Due to this jump, BTC managed to:

  • Flip the 20-day and 50-day SMAs from resistance to support.
  • Reverse the parabolic SAR from negative to positive.
  • Flip the MACD from red to green.

Image: BTC/USD daily

BTC/USD daily chart 072821

The Bitcoin price faces immediate resistance at $39,000. As per the IOMAP, almost 472,000 addresses had previously purchased almost 316,000 BTC at this level.

Image: IntoTheBlock

BTC/USD volume chart 072821

Bears Rekt: Nearly $900 Million In Crypto Short Positions Liquidated 

Recently, crypto short positions worth $883 million were liquidated over 12 hours amid Bitcoin's 12% price breakout. Data from Bybt.com shows that short Bitcoin positions accounted for 81% of those liquidations, with $720 million liquidated. The majority of the BTC and overall crypto short liquidations happened when Bitcoin's price started to see a notable surge.

Source: Bybt and The Block

BTC/USD bybt chart 072821

Bitcoin's price started to see some uptick last week when Elon Musk said in an online event that not only does Tesla hold bitcoin, but SpaceX does too.

UK publication CityAM also recently said in a report that Amazon is accepting Bitcoin as a payment method "by the end of this year," citing an unnamed insider without any response from Amazon. 

Business Insider first reported on Saturday that Amazon is looking for a candidate to "develop Amazon's Digital Currency and Blockchain strategy and product roadmap" based a June 22 job opening. The report suggested that Amazon could be planning to accept digital currency as a payment method but did not specify any timeline. 

Bitcoin Price Is Expected To Reach These Levels

The Bitcoin price should take down the $39,000 resistance barrier to consolidate above the $40,000 psychological level. Following that, the IOMAP tells us that BTC will meet strong resistance at $43,500.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.