Bitcoin Price Prediction: BTC Has Three Straight Bearish Sessions

Daily Bitcoin BTC Technical Analysis

Last Updated July 23rd 2021
3 Min Read
  • The Bitcoin price faces strong resistance at $40,500.
  • The RSI shows that BTC can drop some more before getting oversold.
  • Between June 4 and June 9, the Bitcoin price has crashed from $39,250 to $33,250. Following this crash, BTC experienced a mini resurgence and pushed the price up to $40,650 till June 14 and flip the parabolic SAR from negative to positive. However, the sellers then managed to retake full control.

    Bitcoin Price Has Three Straight Bearish Sessions

    After June 14, the Bitcoin price has had three straight bearish sessions, wherein BTC dropped to $37,720. As things stand, BTC is crashing towards the 20-day SMA. The relative strength index (RSI) shows us that Bitcoin can drop some more before getting oversold.

    Image: BTC/USD daily

    BTC/USD daily chart 061821

    The Bitcoin price has major support at the 20-day SMA ($37,000). As per the IOMAP, over 600,000 addresses had previously purchased 1.25 million BTC at this level.

    Image: IntoTheBlock

    BTC/USD volume chart 061821

    Bitcoin Price On-Chain Analysis – Glassnode

    BTC/USD glassnode chart 061821

    "#Bitcoin exchange flows reversing again as investor confidence is returning."

    BTC/USD glassnode chart 2 061821

    “#Bitcoin Liveliness is a macro indicator for market spending patterns. Uptrends indicate more Coin-days are being destroyed than are accumulated (bearish). Downtrends indicates more coins are dormant, HODLed and accumulating lifespan (bullish).”

    Bitcoin Price On-Chain Analysis – Delphi Digital

    BTC/USD delphi chart 061821

    "The net positions of BTC HODLers is a strong indicator of how longer-term investors are thinking about BTC. For the first time since turning negative in Nov. 2020, this metric has flipped positive, indicating HODLers are buyers here."

    Bitcoin Price On-Chain Analysis – Santiment

    BTC/USD santiment chart 061821

    "#Bitmex traders are continuing to short #Bitcoin in large quantities, at the most #bearish ratio since April, 2020. This is a great sign for those waiting for markets to turn upward again. Prices tend to increase when crowd #FUD begins to take hold."

    BTC/USD santiment chart 2 061821

    "#Bitcoin is ranging at just under $39k. And crowd optimism toward #buyingthedip has settled down significantly. With sentiment back to neutral after being mostly positive to start June, this is a good indication of crowd fear opportunists can pounce on."

    MicroStrategy Selling Billion Dollars in Stock To Buy More Bitcoin

    Analytics software company MicroStrategy is planning to issue additional shares to potentially finance the purchase of more Bitcoin. According to a US Securities and Exchange Commission (SEC) filing, the firm said that it would issue and sell class A common stock to raise up to $1 billion from “time to time” using the investment bank Jefferies as its agent.

    MicroStrategy further said the proceeds from the equity sale would be used to purchase Bitcoin in addition to other purposes.

    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.

    The enterprise analytics software firm currently holds around 92,079 Bitcoin. In the SEC filing, MicroStrategy said that buying and holding Bitcoin is part of its business model.

    MicroStrategy pursues two corporate strategies in the operation of its business. One strategy is to acquire and hold Bitcoin, and the other strategy is to grow our enterprise analytics software business. 

    In the first quarter of 2021, we determined to pursue as part of our overall corporate strategy, a strategy of acquiring Bitcoin with our liquid assets that exceed working capital requirements, and from time to time, subject to market conditions, issuing debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase Bitcoin.

    According to MicroStrategy, the publicity generated by its Bitcoin purchases also serves as a potential marketing opportunity. It noted that their Bitcoin and related activities enhance awareness about their brand and can provide opportunities to secure new customers for their offerings.

    Bitcoin Price Is Expected To Reach These Levels

    As things stand, the Bitcoin price will likely break below the 20-day SMA and drop below the $35,000 psychological level.

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