Bitcoin Price Analysis: BTC Looks To Flip 20-day SMA From Resistance To Support

Daily Bitcoin BTC Price Forecast

Last Updated July 23rd 2021
2 Min Read
  • The Bitcoin price had two straight bullish days.
  • Market momentum reversed the market momentum from red to green.
  • Between July 12 and July 20, the Bitcoin price crashed from $34,300 to $29,700. During this fall, BTC managed to:

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

    Following this drop, the buyers finally managed to take back control.

    Bitcoin Price Must Overcome 20-day SMA ($33,000)

    The buyers have taken control of the Bitcoin price for two straight days during which it jumped from $29,700 to $32,350 and re-entered the $30,000 psychological level. Due to this jump. BTC managed to flip the MACD from red to green.

    Image: BTC/USD daily

    BTC/USD daily chart 072321

    The Bitcoin price faces several strong resistance levels upfront, with the nearest one at the 20-day SMA ($33,000). As per the IOMAP, almost 460,000 addresses had previously purchased almost 425,000 BTC at this level.

    Image: IntoTheBlock

    BTC/USD volume chart 072321

    $52 Billion Asset Management Firm Buys Bitcoin

    Ark Invest, which has over $52 billion of assets under management, recently purchased 310,000 shares of the Grayscale Bitcoin Trust (GBTC) for its ARK Next Generation Internet ETF (ARKW) at $25 per share.

    According to Grayscale’s website, each share of GBTC is redeemable for 0.000939767 BTC, making the purchase worth nearly $8 million. 

    As Bitcoin Magazine reports, while the purchase wasn’t too notable, its timing was as it came right after the price of BTC dipped below the $30,000 mark for the first time in a month.

    The last time Bitcoin dropped below that threshold, the firm bought 1 million GBTC shares for the ARKW ETF. The firm has been consistently adding exposure to GBTC and crypto-related firms such as Square and Coinbase.

    The firm bought 70,000 shares of the Nasdaq-listed Coinbase exchange after their price dropped to $220 earlier and now holds over $900 million worth of the exchange’s stock. Ark also has a $2 billion position in Tesla, which holds over 42,000 BTC in its balance sheet, worth well over $1 billion.

    CryptoCompare data shows that since Ark Invest bought the dip, the price of Bitcoin moved from around $29,500 to about $32,000. 

    Bitcoin Price Is Expected To Reach These Levels

    The Bitcoin price faces a stack of heavy resistance barriers between $33,000 and $35,000. This range includes the 20-day and 50-day SMAs. If BTC overcomes this range, it should reach $36,000.