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Traders are showing renewed hope after the price of Bitcoin (BTC) held in the $ 32,000 range for what could be the second day in a row.
Data from Cointelegraph Markets Pro and TradingView shows that the bulls have managed to regroup at the $ 32,000 level where Bitcoin has been hovering throughout the day, but traders are patiently waiting for further confirmation that Bitcoin could be in the middle of it. a trend reversal before fully re-entering the market.
Here’s what analysts and investors are expecting from the price of Bitcoin.
CME futures see a bullish push
According to a recent report from Delphi Digital, an aggressive reversal was seen on the basis of CME futures on July 21, and this is a bullish sign for BTC traders who have recovered “cheap futures”. “. The resulting contango is interpreted as bullish because the futures price is higher than the spot price of the asset.
As the chart above shows, open interest in CME’s Bitcoin futures doubled from $ 1.25 billion on July 19 to $ 2.5 billion on July 20 after institutions shut down. are positioned “slightly sharp for a long time after a short period of time”.
While leveraged funds remain net as they use CME futures contracts to hedge their spot exposure, Delphi Digital said they have likely “closed some of their positions.”
Delphi Digital said:
Overall, CME’s new futures creation is a slightly bullish tale, given that BTC had a mini pump to recoup its range within hours of the New York session ending. As noted above, the CME futures base hit negative levels yesterday before posting a large reversal. All the data indicates that people are buying futures as BTC has moved below the price range it has been in for months now. “
Several areas of resistance remain in Bitcoin’s path
Bitcoin’s rally above $ 32,000 has rekindled bullish optimism for many traders, but the road ahead is by no means a walk in the park due to the multiple areas of resistance stretching across the- above.
According to pseudonymous Twitter analyst Rekt Capital, many of the previous support levels for Bitcoin, including $ 35,000 and $ 37,000, may soon act as resistance.
Globally, #BTC has a group of potentially new resistances to come
The red weekly level of $ 32,200 that it lost as support last week
The recently lost 50-week blue EMA ($ 33,700)
And the black 2021 Higher Low (~ $ 34,800)
All old media
All possibly new resistance$ BTC #Crypto #Bitcoin pic.twitter.com/rYGSjoPAlY
– Rekt Capital (@rektcapital) July 22, 2021
As of this writing, the price of Bitcoin is attempting a sustained breakout above $ 32,200, where the price has been stuck for most of the day.
Historically, currency inflows climb near market lows
Another sign of optimism came from pseudonymous Twitter user IzzyEibani, who pointed to the recent surge in trade flows as a possible sign that the bottom has been reached.
A little bull hopium for you, inspired by a post by @MrBenLilly
Foreign exchange inflows have increased 3 times since 2017, and each peak corresponded to a major low in prices.
And now the 4th peak has just ended …#bitcoin #BTC pic.twitter.com/FEys8uZ59G
– IzzyEibani (@IzzyEibani) July 22, 2021
A closer look at the chart shows that there have been three instances in the past, August 1, 2017, November 30, 2018, and March 12, 2020, where inward flows to trade have increased in a similar fashion to this. which was observed on July 16. Whenever the market has hit a low within a short period of time after the influx.
If the market plays out similar to the historical pattern, it is quite possible that the recent drop to $ 29,500 was the lowest.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.
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