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Bitcoin Technical Analysis: BTC Must Overcome Resistance At 50-day SMA To Enter $35,000 Psychological Level

Daily Bitcoin BTC Price Analysis

Last Updated July 26th 2021
3 Min Read
  • The Bitcoin price had four straight bullish days between July 21 and July 24.
  • MACD has reversed from red to green.

The Bitcoin price dropped from $34,300 to $29,700 between July 12 and July 20. During the drop, BTC managed to:

  • Reverse market momentum from green to red.
  • Flip the 20-day SMA from support to resistance.
  • Reverse the parabolic SAR from positive to negative.

However, the buyers managed to retake control following this drop.

Bitcoin Price Drops After Encountering Resistance At 50-day SMA

Between July 21 and July 24, the Bitcoin price had 4 straight bullish sessions, during which it jumped from $29,800 to $34,300. Due to this jump, BTC managed to:

  • Re-enter the $30,000 psychological level.
  • Flip the 20-day SMA from resistance to support.
  • Reverse the parabolic SAR from negative to positive.
  • Flip the MACD from red to green.

However, the 50-day SMA has acted as a strong resistance barrier to BTC.

Image: BTC/USD daily

BTC/USD daily chart 072621

The Bitcoin price faces immediate resistance at the 50-day SMA ($35,000). As per the IOMAP, almost 930,000 addresses had previously purchased almost 415,000 BTC at this level.

Image: IntoTheBlock

BTC/USD volume chart 072621

Bitcoin Price On-Chain Analysis – Santiment

BTC/USD santiment chart 072621

"#Bitcoin's daily trading volume is hanging around low levels last seen in October, 2020. These 9-month lows don't necessarily mean $BTC is in for a price decline. If anything, this simply means individual trades will have a greater impact on markets."

BTC/USD santiment chart 2 072621

“The #Bitcoin crowd on #Twitter has become #bullish once again toward the #1 market cap #crypto asset. With $BTC's +6.6% 24-hour rise and 12-day price high to above $34.4k, commentary is showing levels of #FOMO that haven't been seen in 6 weeks.”

BTC/USD santiment chart 3 072621

"#Bitcoin is inching close to the then 18-month low of its supply on exchange ratio, which was hit back on Jan 2, 2021. As $BTC continues moving off exchanges during these suppressed prices, it's a promising sign that markets have decreased selloff risk."

Bitcoin Price On-Chain Analysis – Glassnode

BTC/USD glassnode chart 072621

"#Bitcoin Short-term Holder MVRV measures deviation of price away from the realised price (STH cohort cost basis). Very low values indicate STHs are holding coins significantly below their acquisition cost. In bearish trends, this has typically aligned with capitulation events."

Bank Of America Greenlights Bitcoin Futures Trading

Clients of Bank of America can now reportedly engage in Bitcoin futures trading. The sources of this information stated their preference to remain anonymous, as per a Bitcoinist report. But they disclosed that the bank is allowing some of its clients to trade BTC Futures.

There has been a lot of competition in the industry on Bitcoin Futures Trading. Bitcoin Futures are known in the market as “Derivative Products” that serve as a contract. It is a commitment between the parties that agree to sell or buy a particular asset on an agreed future price and date.

This agreement typically tracks the price of an underlying asset which is usually a digital token. Thus, futures enables users to bet on an asset price. Sometimes, participants in the contract can go for short or long positions. Those traders who take the long position will usually sign to buy an asset on a particular date. Once the date arrives, the parties settle and close the contract.

Source: Tradingview 

BTC/USD tradingview chart 072621

This investment option has become very important as a way for institutional investors to engage actively in crypto. The reason is that the ongoing regulatory issues surrounding crypto have made it unattractive for institutional investors to hold Bitcoin directly.

So, Bitcoin futures is a way for them to engage with BTC and many other cryptos in the market. By coming through futures, these investors can indirectly hold any crypto through its underlying asset. There has been a lot of interest in Bitcoin futures. Many investors are actively engaging in the trade on platforms where it is legal.

Bitcoin Price Is Expected To Reach These Levels

The Bitcoin price faces an immediate barrier at the 50-day SMA ($35,000). If BTC overcomes this range, it should reach the $37,000 resistance.

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