Bitcoin Price Analysis: BTC Struggles To Cross Above Crucial Levels

Daily Bitcoin BTC Price Forecast

Last Updated July 23rd 2021
4 Min Read
  • The Bitcoin price jumped by ~$6,000 over the last three days.
    • The nearest resistance level lies at $56,500 which sees a confluence of the 20-day and 50-day SMAs.

    Between April 16 to April 25, the Bitcoin price has crashed from $63,350 to $49,150 – losing almost $14,000 in its overall valuation. During this downward plunge, BTC managed to flip the 20-day and 50-day SMAs from support to resistance. Following five consecutive bearish days between April 21 and April 25, BTC managed to have two straight bullish days..

     

    The Bitcoin Price Faces Immediate Resistance At $56,500

    Over the last two days, the Bitcoin price managed to rise from $49,150 to $55,000 – gaining almost ~$6,000 in its overall valuation. Despite this bullish surge, the overall sentiment of the BTC market remains negative due to the following signals:

    1. The MACD shows sustained bearish market momentum.
    2. The 50-day SMA has crossed over the 20-day SMA to form a bearish cross.
    3. The Parabolic SAR shows that the current market sentiment is negative.

    Image: BTC/USD daily

    BTC/USD daily chart 042821

    Bitcoin price faces a massive resistance barrier at the confluence of the 20-day and 50-day SMAs ($56,500), wherein nearly 1.5 million addresses had purchased 668,000 BTC tokens.

    Image: IntoTheBlock

    BTC/USD volume chart 042821

    Bitcoin Leverage Study

    BTC/USD chart 042821

    The average funding rate (in %) set by exchanges for perpetual futures contracts. When the rate is positive, long positions periodically pay short positions. Conversely, when the rate is negative, short positions periodically pay long positions. Glassnode shared the chart above and noted the following:

    “With all that frictious leverage wiped out of the system #Bitcoin is unstoppable.”

     

    Coinbase Premium Turns Positive

    BTC/USD coinbase chart 042821

    CryptoQuant Founder Ki-Young Ju, shared the chart above and the following tweet:

    “Institutions like @Tesla use Coinbase Prime brokerage to buy or sell $BTC. It would be bulk orders that can affect BTC price. Coinbase premium has been negative/neutral for the past 7 weeks, but it turned positive lately, hitting an all-time high a week ago. Long-term bullish.”

     

    Tesla Sells Bitcoin In Q1. Pockets Huge Profit

    According to a recent report, Tesla Motors sold a portion of its Bitcoin holdings in the first quarter of 2021, generating net proceeds of $272 million. In a report outlining its quarterly financial results, Tesla noted a $101 million "positive impact" as a result of its Bitcoin sale. An excerpt from the report reads:

    Year over year, positive impacts from volume growth, regulatory credit revenue growth, gross margin improvement driven by further product cost reductions and sale of Bitcoin ($101M positive impact, net of related impairments, in Restructuring & Other line), were mainly offset by a lower ASP, increased SBC, additional supply chain costs, R&D investments and other items. Model S and Model X changeover costs negatively impacted both gross profit as well as R&D expenses.

    In its quarterly cash flow statement, Tesla said "proceeds from sales of digital assets" were valued at $272 million. The electric vehicle maker made headlines in February after revealing a strategic acquisition of $1.5 billion worth of BTC. The company also announced that it would accept Bitcoin as payment for its cars without necessarily converting it into fiat currency. 

    The Elon Musk-led firm also said that it expects vehicle delivery growth to exceed 50% this year, implying minimum deliveries of roughly 750,000 vehicles for 2021. 

     

    Bitcoin Price Is Expected To Reach These Levels

    The buyers will need to overcome the $56,500 resistance barrier to push BTC into the $60,000 psychological level.

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