Bitcoin Price Analysis: BTC Flips Two Crucial Levels From Resistance To Support

Daily Bitcoin BTC Price Forecast

Last Updated July 23rd 2021
3 Min Read
  • Bitcoin price flips 20-day and 50-day SMAs from resistance to support.
  • The parabolic SAR shows that current market sentiment is positive.
  • On April 26, the Bitcoin price jumped from $49,000 to $57,800 on May 1 – gaining almost $9,000 in its overall valuation. During this upward surge, BTC managed to flip both the 20-day and 50-day SMAs from resistance to support. Following that, for the next three days, the bears took control as BTC fell to the $53,650 support line However, this is when the buyers tok back control.

    The Bitcoin Price Has More Room For Growth

    The Bitcoin price bounced up from the $53,650 support line and jumped till $57,000. In today’s surge, BTC managed to flip the 20-day and 50-day SMAs from resistance to support. The parabolic SAR shows that the current market sentiment is positive. The relative strength index (RSI) has not yet entered the overbought zone, as such, BTC has more room for growth.

    Image: BTC/USD daily

    Bitcoin BTC Daily Chart

    On the downside, Bitcoin price has a massive support wall between $55,000 and $56,500, as per the IOMAP. This wall sees a confluence of the 20-day and 50-day SMAs. Previously - at this level - nearly 2 million addresses had purchased almost 1 million BTC tokens. 

    Image: IntoTheBlock

    Bitcoin BTC Volume Chart

    Bitcoin Adds More Whale Addresses

    Bitcoin BTC Whale Addresses

    Santiment shared the above chart regarding Bitcoin’s growing whale addresses:

    "#Bitcoin has slid these past couple days, but as the crowd shows mild concern, new whale addresses have been created. The number of 1,000+ $BTC addresses have jumped back to 2,234, with the largest single-day growth in new addresses (7) since March 31."

    Argentinians Are Flocking To Bitcoin Amid Inflation And Government Suppression

    The demand for Bitcoin and other cryptocurrencies are surging rapidly in Argentina as citizens look for new ways to tackle inflation, according to AFP News reports.

    Maximiliano Hinz, Latin American director of crypto exchange Binance, said:

    The number of user accounts for investing in cryptocurrencies has multiplied by ten in Argentina since 2020. 

    As per the report, the worth of Argentina’s sovereign currency, the Peso, is deflating since inflation averaged 45% over the past three years. Additionally, the nation’s GDP has declined by about 10% in 2020, while the economy has been in recession since 2018.

    Historically, Argentinians invested their money in USD to balance the inflation, but this method has become unviable recently. Apart from low interest rates in local banks, the government has also imposed a strict purchase limit of $200 per month for citizens.

    In this light, digital assets have become the obvious solution to the economic issues in Argentina. According to Hinz, there are roughly two million trading accounts registered in the country currently. The total population of the country is 45 million. Digital assets specialist Marcos Zocaro said:

    It is no coincidence that Argentina and Venezuela, countries with high inflation, are the main crypto poles in South America. 

    I have older clients who used to be afraid of making a fixed deposit with a bank but are buying cryptocurrency without fear of risk. 

    Argentinians are increasingly resorting to cryptocurrencies as a means of payment as everything, including cars and second-hand clothes, can be bought and sold for digital assets in the country.

    A few days back, local e-commerce firm Libre announced that it would enable Bitcoin payments for real estate. 

    Bitcoin Price Is Expected To Reach These Levels

    The Bitcoin price will need to cross over the $58,000 resistance barrier to reach the $60,000 psychological level.