Bitcoin Price Analysis: BTC Retraces After Testing $38,000

Last Updated July 23rd 2021
3 Min Read

Daily Bitcoin BTC Price Forecast
  • Bitcoin has flipped the 50-bar SMA in the 4-hour chart from support to resistance.
  • If buyers clear $38,000, then they have clear path to $40,000.

Following four consecutive bearish days, Bitcoin bulls came roaring back. They found support at the $34,500 support wall and managed to push the price of Bitcoin up to $37,250. So what does that mean for the future price action? Let’s take a look.

 

$38,000 Is Still A Problem

Despite this Wednesday’s Bitcoin bullish price action, the price has struggled to overcome the $38,000 resistance barrier. If the Bitcoin price gets rejected multiple times, it may drop down to the $34,500 support barrier, and then to the 20-day SMA.

btc/usd daily chart 011421

Image: BTC/USD daily

When you check out the IntoTheBlock chart below, you can visualize weak and robust support and resistance levels. As you can see, previously, the price of Bitcoin at the $38,000 resistance barrier, >540,000 addresses had purchased 294,000 BTC tokens. If the buyers somehow break above this level, they should take the price back to the $40,000 psychological level.

btc/usd volume chart 011421

Image: IntoTheBlock

There are some worrying signs when we see the 4-hour price chart. It looks like after the price of Bitcoin got rejected at the $38,000 level, it broke below the 50-bar SMA. By flipping the 50-bar SMA from support to resistance. However, do note that the MACD still signifies that the overall market momentum is in the green.

btc/usd 4-hour chart 011421

Image: BTC/USD 4-hour chart

 

More BTC Adoption Incoming? Grayscale Reopens Majority Of Its Crypto Trusts

Investments manager Grayscale has reopened its doors to new investors for a majority of its cryptocurrency trusts. The firm had halted taking on new investors in late December 2020. 

Grayscale had paused accepting investments from new investments for six of its cryptocurrency funds. The funds’ existing investors were still able to purchase shares. Currently, however, Grayscale products such as the Bitcoin Trust, the Ethereum Classic Trust, the Bitcoin Cash Trust, Litecoin Trust, and the Digital Large Cap Fund are all available to new investors. The Ethereum Trust is yet to resume accepting new investments. 

The XRP Trust is also closed and is likely to remain so for the next few months. A few days back, Grayscale revealed that it had liquidated all XRP positions from its large-cap fund. This came shortly after the US Securities and Exchange Commission (SEC) filed a lawsuit against Ripple. The commission has alleged Ripple of selling approximately $1.3 billion worth of the XRP token as unregistered securities. 

As of January 11, Grayscale had a whopping $24.5 billion assets under management (AUM) across its suite of investment products. The Grayscale Bitcoin Trust alone has over $20 billion. 

 

Bitcoin Price is Expected To Hit What Level?

If the bears take control, you can expect BTC to drop to the $34,500 support zone. As per the IOMAP, this is a very healthy zone since 784,000 addresses had previously purchased 460,000 BTC tokens. This level is strong enough to absorb a considerable amount of selling pressure.

On the other hand, if the buyers manage to gain enough momentum to flip the $38,000 line from resistance to support, the price of Bitcoinshould reach $40,000.

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