Disclaimer: The information presented does not constitute financial, investment, trading or any other advice and is solely the opinion of the author
- BTC struggled to recover strongly from the range low
- Long term holders rallied more during the last price consolidation
Bitcoin [BTC] was at a crossroads as the bears and bulls battled for the $30,000 price level. Since Wednesday (July 19), BTC has closed its daily candlestick sessions below $30,000. The trend reinforced the bears’ increasing clout as they attempted to convert $30,000 into resistance.
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Source: Coin360 (BTC Weekly Price Performance)
During the same period, the US Dollar Index (DXY) surged higher, in the opposite direction of BTC’s price action. Based on weekly performance, BTC suffered around 5% losses.
Will the range-low rescue bulls hold again?
Source: BTC/USDT on TradingView
Until now, the $29.5k level has been a crucial rebound level when BTC dipped below $30k during recent swings. Besides, the 50-EMA (Exponential Moving Average) has been a crucial dynamic support and resistance level.
So a fall below $29.5k and subsequent breach of the $29.3k 50 EMA will amplify bears’ influence in the market. In such a bearish scenario, the crucial support levels to watch are $28k and $26.6k, especially if next week’s FOMC meeting (July 25/26) takes an aggressive stance and unnerves investors.
Conversely, bulls could strengthen their position if they secure the low range of $29.3k – $29.5k. However, the $31.5k and $32k levels remain the immediate hurdles to clear before BTC stretches to $34k.
Meanwhile, the RSI (Relative Strength Index) pulled back from the overbought zone and passed the 50-point mark at the time of writing. Similarly, the CMF (Chaikin Money Flow) broke below zero. Taken together, the indicators underlined the bears’ increasing leverage.
Long-term holders don’t worry
Source: Glassnode
Despite bearish overtures, long-term BTC holders piled up even during the latest price swings. Notably, total supply from long-term holders reached a new high of 14.5 million, despite BTC threatening a bearish breakout.
How many Worth 1,10,100 BTC today?
Nevertheless, BTC listed over $14 million total liquidations in the past 24 hours. Of the $14 million, $12 million accounted for wrecked long positions, further highlighting the strong bearish grip.
Investors should follow the Fed’s rate hike decision next week to confirm whether bearish pressures will ease or not.