Bitcoin Price Analysis: BTC Hovers Horizontally Above The $40,000 Psychological Level

Daily Bitcoin BTC Price Forecast

Last Updated July 23rd 2021
3 Min Read
  • The Bitcoin price faces strong resistance at $41,500.
  • BTC flipped the parabolic SAR from negative to positive.
  • Between June 4 and June 8, the Bitcoin price has crashed from $39,250 to $33,300. During this crash, BTC managed to flip the 20-day SMA and parabolic SAR from bullish to bearish. Following this, BTC jumped to $40,500 on June 14 and has been hovering horizontally ever since.

    Bitcoin Price Hovers Horizontally Under The $41,300 Resistance

    Over the last four days, the Bitcoin price flashed the following buy signals:

    1. The MACD shows increasing bullish momentum.
    2. The parabolic SAR reversed from negative to positive.
    3. Reversed the 20-day SMA from resistance to support.

    As things stand, BTC will have a lot of trouble in conquering the $41,300 resistance barrier.

    Image: BTC/USD daily

    BTC/USD daily chart 061621

    The Bitcoin price faces major resistance at $41,500. As per the IOMAP, around 75,000 addresses had previously purchased 330,000 BTC at this level.

    Image: IntoTheBlock

    BTC/USD volume chart 061621

    Bitcoin Price On-Chain Analysis – CryptoQuant

    BTC/USD cryptoquant chart 061621

    "#Bitcoin to stablecoin ratio oscillator. A perfect BTFD hit rate since 2019, and it just printed another buy signal."

    Bitcoin Price On-Chain Analysis – Glassnode

    BTC/USD glassnode chart 061621

    "The response of 'the little guy' to the evolution of #Bitcoin as an asset can be seen in the supply distribution. Entities with < 1BTC (sat stackers) almost own 5% of the supply and have accumulated in four accelerating phases."

    BTC/USD glassnode chart 2 061621

    “Large volumes of $BTC accumulated in the early bull remain tightly held, even as price trades back around their cost basis. Coins are maturing into 3m-12m age bands indicating Long-Term Holders are unshaken by volatility.”

    Bitcoin Price On-Chain Analysis – Santiment

    BTC/USD santiment chart 061621

    “#Bitcoin got up to a 3-week high $40.8k a few hours ago, and the upward push appears to be aided by a healthy flow of funds being moved off exchanges today. When flow balance heads into the negative like it consistently did Monday, it's a #bullish sign.”

    MicroStrategy unveils $1 billion stock offering. Proceeds to be used to buy Bitcoin.

    MicroStrategy recently disclosed that it completed a $500 million debt offering to fuel additional Bitcoin purchases. Hours after the announcement, the firm signaled in an SEC filing that it might sell as much as $1 billion worth of its stock over time. Micheal Saylor, the CEO of MicroStrategy, took to Twitter and noted: 

    MicroStrategy Launches “At the Market” Securities Offering for Flexibility to Sell Up to $1 billion of its Class A Common Stock Over Time $MSTR

    In terms of the use of proceeds, MicroStrategy said that it might use the funds gleaned from any stock sales for various reasons, including the acquisition of more bitcoin. An excerpt from the filing reads:

    We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin, unless otherwise indicated in the applicable prospectus supplement. We have not determined the amount of net proceeds to be used specifically for any particular purpose. As a result, management will retain broad discretion over the allocation of the net proceeds of any offering.

    The timing is notable given that financial news reports ahead of the completion of the $500 million debt offering indicated broad interest, to the tune of $1.6 billion, for that particular deal. MicroStrategy currently holds more than 92,000 BTC on its balance sheet, worth roughly $3.7 billion.

    Bitcoin Price Is Expected To Reach These Levels

    As things stand, the Bitcoin price will need to break above the $41,500 resistance barrier to reach the 200-day SMA.

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