Bitcoin Technical Analysis: BTC Bears In Control For Two Straight Days

Last Updated July 23rd 2021
3 Min Read

Daily Bitcoin BTC Price Analysis
  • Bitcoin price has strong support at $55,000.
  • Long-term 3+ year holders have continued to accumulate instead of selling.

Bitcoin price has gone through two major bearish days, wherein it dropped from $61,160 to $56,900. In the process, it dropped below the $60,000 psychological level. Let’s take a closer look with technical analysis.

Bitcoin Price Drops By Over $4,000

Over the last two days, the Bitcoin price has lost over $4,000 in overall valuation. The MACD shows us that the market momentum is losing its bullishness.

btc/usd daily chart 031621

Image: BTC/USD

On the downside, Bitcoin price has a strong support level at $55,000, wherein 870,000 addresses had purchased almost 400,000 BTC tokens. This level seems robust enough to absorb a lot of selling pressure.

btc/usd volume chart 031621

Image: IntoTheBlock

Long-term Holders Are Accumulating

Glassnode Chart

Glassnode shared the above chart to shows that long-term holders are accumulating instead of selling.

“Longer-Term 3+ year HODLers have continued to accumulate #BTC while newer HODLers in the last 6-12 months have sold into the recent rally.”

Glassnode Chart

Similarly, Glassnode shared the above chart to add further credence to the $55,000 support line.

“Strong #Bitcoin support around this $55k area confirmed by both on-chain and trading volume - shouldn't drop below it for too long. Definitely still expecting at least one more leg up.”

Bitcoin Price Still Attracts High Volume Of Buying Pressure

Bitcoin recently hit a new all-time high of $61,800 after bulls regained momentum and set out to break previous resistance turned support at $50,000. The upsurge was highly speculated as whale dumps were still dominating trading activities, while retail traders were constantly selling at every dip. 

Meanwhile, Bitcoin shorters got drowned as the bulls took over. Liquidation metrics show that $344.4 million worth of Bitcoin shorts were liquidated just four hours before BTC broke $60,000. The surge to $60,000 was imminent largely because of institutional accumulation which had surpassed the metrics captured on the Bitcoin blockchain.

Popular on-chain analyst Willy Woo has revealed that Bitcoin is well-positioned to stay afloat $60,000. 

Solid validation of $60k Bitcoin already. The coins moving into investor wallets at this price level is already quite huge given the short number of hours we've had so far.”

As the buying rate is surging at an increasing pace, the likelihood of a correction is extremely low. 

Glassnode Chart

Image: Glassnode 

The chart captures the number of supply recorded in investors’ wallets. At a price point of $59,417, there’s nearly $200,000 flowing into investors’ wallets. The number could also potentially surge from here on, pushing the prices further above.

South Korean Crypto Exchange Volume > Country's Stock Market

The volume of transactions in the South Korean cryptocurrency market briefly surpassed the daily average transaction amount of the country’s stock market recently.

The combined 24-hour volume of major South Korean crypto exchanges UPbit, Bithumb, Coinone and Korbit was over $14.6 billion on March 14, as per CoinMarketCap. On March 12, the same metric was roughly $14.5 billion on the Korea Composite Stock Price Index (KOSPI), and $10 billion on the Korean Securities Dealers Automated Quotations (KOSDAQ).

The increase in volume came as Bitcoin rose to a new all-time high of more than $61,000 before dipping under $60,000 again. Notably, the trade volumes appearing on CoinMarketCap are not always believed to be accurate because of volume inflation. The crypto data firm has introduced many initiatives to fight inflated volume data but the figures reported on the platform are higher than what’s seen on Messari.

Last year, some South Korean crypto exchanges experienced their share of regulatory and business-related challenges. In August, local authorities seized Coinbit, the country’s third-largest cryptocurrency exchange, following allegations that 99% of transaction volume on the exchange was faked through wash trading. CoinMarketCap data shows that Coinbit’s 24-hour transaction volume is now just over $900 million.

Bitcoin Price Is Expected To Reach These Levels

Bitcoin price may drop to $55,000 before bouncing up from this support wall to re-test $60,000.

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