Bitcoin Price Prediction: BTC Wobbles At $37,000

Daily Bitcoin BTC Technical Analysis

Last Updated July 23rd 2021
3 Min Read
  • Bitcoin price had previously reversed MACD from bearish to bullish.
  • IOMAP shows that BTC faces considerable resistance at $37,000.
  • Ever since May 22, the Bitcoin price has been trending (more or less) in a narrow $2,000 channel between $35,000 and $37,000. On May 30 and May 31, the premier cryptocurrency had jumped from $34,700 to $37,000 before dropping to $36,650 at the time of writing.

    Bitcoin Price Flashes Positive Signals Despite Drop

    Over the last eight days, the Bitcoin price had reversed the parabolic SAR from negative to positive. Along with this, BTC had already flipped the MACD from bearish to bullish. However, despite flashing these two bullish signal, the premier crypto has also flashed a negative signal in the form of a bearish cross with the 200-day SMA and 20-day SMA crossing over each other.

    Image: BTC/USD daily

    BTC/USD daily chart 060221

    Looking at the IOMAP, the Bitcoin price faces strong resistance at $37,000. Previously, at this level, around a million addresses had purchased almost 560,000 BTC tokens.

    Image: IntoTheBlock

    BTC/USD volume chart 060221

    Bitcoin Price and S2F Not In Alignment

    BTC Price vs S2F

    Wu Blockchain tweeted:

    “S2F Model predicts that the price of Bitcoin will reach $74,474 around May 15. In fact, according to Binance data, the closing price of Bitcoin on May 15 is only $46762.99....Let's see. Plan B once said that if a bitcoin of $100,000 is not witnessed before 2022, the model will be invalidated.”

    India FUD Invalidated By Central Bank

    The Reserve Bank of India, India’s central bank, has clarified the confusion around a letter sent to bank account holders. Last week, two of the largest banks in India, HDFC and SBI, sent notices to account holders which warned that cryptocurrency transactions “aren’t permitted as per RBI guidelines.” 

    The banks cited a document published by the RBI in April 2018, which ordered that “entities regulated by the Reserve Bank shall not deal in [cryptocurrencies] or provide services for facilitating any person or entity in dealing with or settling [cryptocurrencies].” 

    Currently, however, the RBI has clarified that the guidelines are no longer valid. The country’s Supreme Court reversed the order on March 4, 2020, ruling in favor of Indian crypto investors and overturning the ban. RBI wrote:

    The circular is no longer valid from the date of the Supreme Court judgement, and therefore cannot be cited or quoted from. 

    Under current rules, banks are only allowed to carry out “due diligence processes” to uphold the anti-money laundering laws and other anti-terrorist financing laws, added RBI. 

    Uncertainty around India’s crypto regulations has created plenty of confusion. Most recently, in March 2021, it was reported that Indian regulators were considering a comprehensive ban on cryptocurrency.

    There have been other reports of a ban on crypto in the past, but none are official to date. 

    The Moon Crypto: We Are Still In Bull Cycle

    Eternal Bitcoin bull tweeted that the Bitcoin price is still in the bull cycle.

    BTC Bull Cycle

    "Comparing the last two bull cycle tops, you can see that the local top for #Bitcoin doesn’t really look like a blow-off top. Usually, a blow-off top is very sharp. Buy the Dip!!! This bull cycle top has not been reached yet!!!"

    Bitcoin Traders Keeping Their BTC in Exchanges

    BTC Exchange Inflow vs Outflow

    Santiment observed:

    "#Bitcoin traders are favoring keeping their assets on exchanges during this volatile beginning of June. @santimentfeed data indicates that $BTC's network just had the largest differential between coins moving on exchanges vs. off in over three months."

    More Bitcoin In Loss Than Profit

    BTC Profit vs Loss

    According to Glassnode: 

    "Bitcoin Supply in Loss (7d MA) just reached a 10-month high of 5,047,080.929 BTC."

    Bitcoin Price Is Expected To Reach These Levels

    For the buyers, the task is pretty simple: break the Bitcoin price above the $37,000 resistance barrier, and take down $38,500. If they can do that, then BTC should enter the $40,000 psychological level.