Bitcoin Price Prediction: BTC Creeps Back Into $33,000
Daily Bitcoin BTC Technical Analysis
- The Bitcoin price crashed after continuous resistance at 20-day SMA.
- Taking down 50-day SMA will flip parabolic SAR from negative to positive.
Between June 22 and June 28, the Bitcoin price has been hovering between $31,670 to $34,650. Before that, between June 15 and June 21, BTC had dropped from $40,350 to $31,440. Since July 1, the Bitcoin price has been pretty much hovering between the $33,500 support and the 20-day SMA. On July 4, BTC managed to creep above the 20-day SMA but was immediately shut down
Bitcoin Price Held Up By $32,750 Support
Since July 5, the Bitcoin price crashed from $35,300 to $33,100, losing a little more than $2,000. The bears managed to flip the 20-day SMA from support to resistance during this drop. The MACD indicates dwindling bullish momentum.
Image: BTC/USD daily
Bitcoin price faces a strong support wall at $32,750. As per the IOMAP, almost 460,000 addresses had previously purchased almost 430,000 BTC at this level.
Visa Reports Over $1B Spent On Crypto-Linked Cards
Visa recently revealed that consumer spending with Visa-based crypto credit cards already exceeded $1B in 2021. The payments giant also noted that it plans on partnering with 50 different cryptocurrency platforms to allow ease of access for consumers converting and spending digital currencies at millions of merchants across the globe.
These crypto companies include the likes of Coinbase, Block, Crypto.com, and more. Notably, just earlier this year, Visa said it would allow consumers to use stablecoin USDC to settle transactions. Visa is also joining forces with FTX for the company’s FinTech “FastTrack program”. As part of the program, they will help facilitate FTX paying 50% of its employees in USDC. The partnership and program is nothing new for the credit card firm, as partnerships with firms like Circle have come into the fold in the past year.
Visa has also built out a “Digital Currency Roadmap” that was initially published last year. A recent report highlighted progress from that roadmap, calling out three major sticking points: “an expanding and evolving ecosystem, rewards reimagined, and stablecoins come to the fore."
The company looks to continue to leverage relationships with crypto-first firms to expand growth in this ecosystem. They cited an infrastructure that they believe will help “establish Visa as the network of choice for crypto native companies.” Interest accounts, lending, and direct deposits are major focal points for Visa and its partners.
With regards to rewards, partnerships continue to help build new avenues for Visa to grow. Users with partner programs can spend fiat to earn crypto rewards in the same fashion that we see airline and hotel points associated with consumer spending. Partner programs are already in place with firms like BlockFi and Circle and have contributed substantially to the $1B in crypto card spending.
On-Chain Analyst: Bitcoin Price to Explode Due to Impending Supply Shock
Popular Bitcoin analyst Willy Woo has predicted a potential supply shock for Bitcoin could see the price of the cryptocurrency surge shortly. Long-term Bitcoin holders have been accumulating coins while short-term holders have been selling.
As per a Cointelegraph report, Woo said that the ratio of Bitcoin held by long-term investors is growing, as these are actively absorbing selling pressure from investors that have been selling their cryptocurrency holdings since February.
To Woo, the incoming supply could be as hard as one that “went by unnoticed by the market in Q4 2020.” At that time, the price of Bitcoin started surging and went from around $11,000 to a new $64,000 all-time high earlier this year. Woo said:
"Pundits were debating whether BTC was an inflation hedge in a post-COVID world when the data was pointing to long term investors stacking BTC at a fast pace. The price subsequently went on a tear, very quickly de-coupling from its tight correlation with stocks."
Data from on-chain analytics firm Glassnode shows that the Bitcoin network is adding 32,000 users every day, a level that has not been seen since January 2018, when it added 40,000 users per day ahead of a year-long bear market.
Woo noted that this time things are different as “new users are taking this opportunity to buy the dip. They are coming in at the highest rate seen in 2021.” The analyst, as reported, has predicted the price of Bitcoin could hit $200,000 by the end of this year, even after lowering his BTC price prediction from $400,000.
Earlier this month, Willy Woo revealed that signals are suggesting that the Bitcoin network’s user growth is now “near an all-time high. This is despite the price of the cryptocurrency ranging between $30,000 and $40,000.
Bitcoin Price Is Expected To Reach These Levels
The Bitcoin price needs to take down the 20-day SMA and then conquer the 50-day SMA. If the buyers manage to do that, they should be able to reverse the parabolic SAR from negative to positive. On the downside, a break below $32,750 support will take BTC to $30,000.