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Bitcoin (BTC) continued to rebound to $ 31,000 support on Friday as new data reinforced the importance of current price levels.
No $ 42,000 trip?
Data from Cointelegraph Markets Pro and TradingView showed BTC / USD repeatedly testing but, so far, had not exceeded $ 31,000 on Friday.
A late surge to nearly $ 32,000 then entered as unconfirmed reports surfaced that Bank of America had given the green light for Bitcoin futures trading.
Market participants had mixed opinions on the near-term outlook, with popular trader Michaël van de Poppe noting on Thursday that $ 31,000 was sort of a final frontier for Bitcoin – losing it, and $ 29,000 or even $ 24,000. would logically be the next ones.
Crypto trader Ed also appeared undecided that day. Earlier in the week, he argued that Bitcoin could cause a shock rebound and hit its highs of $ 42,000 before pulling back again to challenge the $ 30,000 support.
“BTC makes new lows invalidates the idea of continuing this rebound,” he wrote in an update. Even a drop in the US Dollar Index (DXY), traditionally inversely correlated with BTC, likely won’t help bulls significantly, he added.
Update on this ⬆️
BTC hits new lows invalidates the idea of a continuation of this rebound.
I still think DXY should see a pullback, but that is unlikely to take BTC to 42k.
Maybe there is no game tucked away on the charts and BTC is just woefully low and I was crazy pic.twitter.com/3nr65V9y4Z– Crypto_Ed_NL (@Crypto_Ed_NL) July 16, 2021
Meanwhile, new data showed that considerable activity on the chain had occurred at current price levels.
According to on-chain monitoring resource Glassnode, 9.93% of Bitcoin’s supply has moved between $ 31,000 and $ 34,300 – a clear area of interest for buyers and sellers.
“It is now convincingly the largest volume cluster to achieve since $ 12,000,” the company said. commented.
Previously, Cointelegraph Noted that $ 30,000 in itself is an important level in the minds of traders small and large, whose behavior has shifted from a “sell” mentality to a “buy” mentality in recent weeks.
Altcoins lose mediocre sentiment
A look at altcoins, meanwhile, highlighted the lack of bullish sentiment in the cryptocurrency markets at the end of the week.
Most of the top 50 tokens by market cap suffered heavier losses than BTC / USD, reaching as much as 12% in the absence of price triggers.
Ether (ETH), the largest altcoin, was heading towards a crucial support area around $ 1,800. The start of a new period of accumulation was now “very likely,” van de Poppe said in a YouTube update Thursday before volatility returned.
Bitcoin’s growing dominance, reaching 46% on that day, added to the altcoin woes.
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