Bitcoin Technical Analysis: Bearish Engulfing Pattern Crashes BTC below $57,000

Daily Bitcoin BTC Price Analysis

Last Updated July 23rd 2021
2 Min Read
  • Bitcoin price volatility is decreasing as per the Bollinger Band.
  • The MACD shows sustained bullish market momentum.
  • Between April 26 and May 8, the Bitcoin’s price jumped from $49,000 to $58,800 flipping both the 20-day and 50-day SMAs from resistance to support. Following ETH’s up surge, it seemed like BTC would follow suit. However, the premier crypto fell on the verge of re-entering the $60,000 zone.

    The Bitcoin Price Retreats On The Verge Of Hitting $69,000

    So far today, the Bitcoin price dropped from $59,000 to $56,650 – losing almost $2,500 in its overall valuation. However, there are two factors that shows us that the overall market sentiment is positive – The parabolic SAR positive, while MACD shows sustained bullish market momentum.

    Image: BTC/USD daily

    btc/usd daily chart 051021

    Bitcoin price failed after losing momentum at the $59,000 resistance barrier.  As per the IOMAP, previously - at this level - >1 million addresses had purchased almost 447,000 BTC tokens. As of now, the 50-day SMA is holding firm to prevent further downtrend. 

    Image: IntoTheBlock

    btc/usd volume chart 051021

    Bitcoin Millionaires On The Rise

    Santiment Chart - Bitcoin Millionaires

    "Of the 16,104 #Bitcoin addresses holding between 100 to 10,000 $BTC currently, they own 9.1M $BTC ($531.3B in USD). After declining holdings from April 10 to May 4, this group is showing signs of accumulating again with 20k added $BTC the past 2 days."

    In fact, the rich Bitcoiners are just getting richer

    Santiment Chart - Addresses Holding > 10,000 Bitcoin

    "There are currently 86 #Bitcoin addresses that hold at least 10,000 $BTC. The past month, these whale wallets have accumulated ~120,000 more $BTC, about 0.67% of the total supply, valued at $6.9B. This is the most sustained accumulation since Jul, 2019."

    However, sat-stakers (aka people holding < 1 BTC) are getting into the ecosystem. These are probably newbie investors who are playing around with BTC and trying to understand how it works.

    Glassnode Chart - Sat Stackers Supply Held

    "#Bitcoin accumulation by 'sat stackers' has continued slow, steady and uninterrupted for many years. Addresses holding less than 1BTC now own 5.25% of the circulating $BTC supply. So far we've not seen a FOMO impulse like 2017 blow-off top."

    Bitcoin Price Is Expected To Reach These Levels

    If Bitcoin price crashes below the 50-day SMA, a further downtrend will take BTC to the 20-day SMA. BTC holders will hope that these two lines hold strong to prevent a catastrophic crash.

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