Bitcoin price has been in a relatively calm period for a few days in a row, but today’s calm is testing the $33,000 support line again. The last time Bitcoin tested that area was back in mid-February, when a lot of money was flowing into the asset. The cryptocurrency’s price is now testing that support line again after a four-day-long “failure” of a $33,000 price level to provide any support.
The Bitcoin price hit a “critical” pivot zone this week, and there’s a chance we could see Bitcoin price return to $33,000. This isn’t a prediction, it’s a possibility based on some assumptions.Bitcoin (BTC) entered the market on the 14th. July failed to break through the $33,000 mark, with only modest progress in recovering from multi-day lows.
1-hour candlestick chart of BTC/USD (Bitstamp). Source: TradingView
BTC price: Adjustment and launch under $33,000
Data from Cointelegraph Markets Pro and TradingView showed another day of fluctuations – albeit with increased volatility – for BTC/USD on Wednesday.
Overnight, the pair briefly reached $31,750 before a strong rebound led to highs of $32,970. This meant that the $33,000, which was a solid support level, was still out of reach.
According to renowned trader Michael van de Poppe, that $32,600+ area needs to be broken if bitcoin is to have any chance of reaching higher targets in its trading range.
Many altcoins are performing double bottom tests. Great, he added in his latest update on Twitter.
At the time of writing, bitcoin stood at around $32,800, after several attempts to break through the $33,000 mark. Buy and sell levels on Binance showed that support at $30,000 is holding firm, while the resistance band at $33,000 is slowly disappearing, however.
BTC/USD (Binance) Buy and sell stands from 14. July. Source: Hardware/Twitter Display
Strong hands absorb quiet money
Expectations were high on the eve of the submission of a high-profile bitcoin bill by the government of Paraguay. Although information on the legislation is sketchy, optimists hope that the country will follow El Salvador’s lead and make bitcoin a legal currency.
Fundamental factors aside, bulls had little other leverage at the time of writing, as fund accumulation by large and small investors has not yet translated into price action.
Related: A good buy? Bitcoin is trading at a record 59% below the target value of the BTC price movement model.
However, in a new analysis, William Clemente suggests that there may be a delay in the price reaction.
And vice versa. Sometimes the price can lag behind accumulation flows. So we had a bullish diva in January or September 2020, but not of this magnitude, he said in a comment on Twitter.
Also noteworthy: We had one in March 2020, but macroeconomic forces can of course reverse the trend. Annotated chart of the bitcoincash supply ratio. Source: William Clemente/Twitter
Clemente highlighted the Bitcoin Liquid Supply Ratio (LSR) chart, a metric that now signals BTC movements for those selling at low prices.
Nothing has changed, the supply shock is still there, he said, referring to the halving of block grants last year.
LSR shows that the action of bitcoins absorbed by strong hands will only move further and further away from the price. Trading is also down by -21,829 BTC over the past two weeks; a clear accumulation trend in these flows as well.
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