Bitcoin Technical Analysis: BTC Hampered By The 20-day SMA

Last Updated July 23rd 2021
5 Min Read

Daily Bitcoin BTC Price Analysis
  • Bitcoin price has two healthy support levels at $47,500 and $47,000.
  • BTC is trying to enter the $50,000 price level.

Bitcoin price had dropped from $57,300 to $45,200 between February 22 and February 28. The bulls then pushed the price up to $49,600 on March 1. Since then, BTC had tried desperately to enter the $50,000 level, and failed.


Bitcoin Price Tries To Break Above 20-day SMA

Looking at the daily Bitcoin price chart, the one thing that is preventing BTC from entering the $50,000 level is the 20-day SMA. As things stand, the price is hugging along the curve, and its unsure if the buyers have what it takes to break past this level.

btc/usd daily chart 030321

Image: BTC/USD daily

As per the IOMAP, at the 20-day SMA ($50,000), 450,000 addresses had previously purchased 250,000 BTC tokens. This shows why this level is pretty strong. Above that, there is another resistance barrier at $53,200.

btc/usd volume chart 030321

Image: IntoTheBlock


Bitcoin Under Negative Market Sentiment?

btc/usd santiment chart 030321

As per Santiment, the overall market sentiment seems to be negative.

“Buying into crowd fear can lead to rewards. And albeit only mildly fearful, #Twitter's #Bitcoin commentary is at the most negative ratio in about 5 months, according to our algorithm. After last week's retrace, the bearish narrative has returned.”

However, it’s not all doom and gloom.

btc/usd glassnode chart 030321

Glassnode’s HODL waves metric shows that  3.3M Bitcoin or 17.87% of circulating supply hasn’t been moved for over 7 years. This shows that the holders would rather hold on to their tokens, instead of selling them off.


MicroStrategy Now Holds $4.4 Billion In BTC

MicroStrategy recently announced that it has purchased an additional $15 million worth of Bitcoin. It now holds over 90,000 BTC and has become one of the largest hodlers in the market. Anthony Pompliano tweeted:

“BREAKING: MicroStrategy has purchased an additional 328 bitcoin for $15.0 million. Michael Saylor understands that bitcoin is a game of accumulation. He also just bought the dip :)”

MicroStrategy is responsible for a spike in corporate interest in Bitcoin as a hedge against the US dollar amid rising inflation. In a recent SEC filing, the Virginia-based firm stated: 

On March 1, 2021, MicroStrategy Incorporated announced that it had purchased approximately 328 bitcoins for $15.0 million in cash, at an average price of approximately $45,710 per bitcoin, inclusive of fees and expenses.

“MicroStrategy has purchased an additional ~328 bitcoins for ~$15.0 million in cash at an average price of ~$45,710 per #bitcoin.  As of 3/1/2021, we #hodl ~90,859 bitcoins acquired for ~$2.186 billion at an average price of ~$24,063 per bitcoin. $MSTR”

The company now holds 90,859 BTC which it acquired at an aggregate purchase price of $2.186 billion. This puts the average price of each BTC they own at $24,063. Microstrategy’s total BTC stash is now worth around $4.39 billion. This translates to over $2.2 billion in profits for the firm. 

The company’s shares have benefitted from this accumulation. After announcing the new BTC purchase, its shares gained 4.56%  Micheal Saylor, the CEO of MicroStrategy believes that BTC will become the saving method of choice for billions of people in the near future. 

We’re going to see a day when 7-8 billion people have a bar of digital gold on their phone, and they’re using it to store their life savings with it.


Goldman Sachs Resumes Bitcoin Trading Desk

Goldman Sachs has reportedly resumed its cryptocurrency trading desk. According to a CNBC report that cited a source close to the matter, the company will begin dealing Bitcoin futures and non-deliverable forwards for customers shortly.

This news comes amid rising Bitcoin interest by institutions, which has surged by more than 470% over the past year. Investors and enterprises are increasingly seeing Bitcoin as a hedge against inflation as governments turn on the stimulus taps. 

The trading desk is part of Goldman’s initiatives within the fast-growing digital assets sector. A few other activities include projects involving blockchain technology and central bank digital currencies. The banking giant is also exploring the potential for a Bitcoin exchange-traded fund and has requested information to explore digital asset custody, the source added. 

Goldman first set up a cryptocurrency desk in 2018, just as Bitcoin’s price was falling from record highs. Since then, market infrastructure for BTC and other major cryptocurrencies has significantly matured.


Bitcoin Price Is Expected To Reach These Levels

Bitcoin price will continue to struggle to go above the $50,000 mark as of now.

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