13 July 2024
The Bitcoin price has recently shown signs of recovery, climbing back to the $58,000 level after hitting a five-month low of $53,500. However, technical analysis suggests that the digital asset may struggle to surpass crucial indicators, potentially revisiting lower price levels.
In a recent post on social media platform X (formerly Twitter), market expert Jackis highlights the bearish D1 trend indicator on the 12-hour chart, indicating the need for Bitcoin to reclaim the $64,000 zone to reverse the prevailing bearish daily trend.
Despite this cautionary outlook, there are encouraging signs, including significant inflows to Bitcoin exchange-traded funds (ETFs) and long-term holders accumulating more BTC.
BTC Struggles To Break Bearish Trend
Despite the recent recovery, Bitcoin’s technical analysis suggests that the bearish trend remains. Jackis emphasizes that even if the Bitcoin price makes a new leg higher to $60,300, the D1 trend indicator remains bearish unless BTC manages to recapture the $64,000 zone, which has already proven to be a major resistance for the bulls, as the price of BTC failed to breach it on its previous attempt on July 1st.
According to Jackis’ analysis, the target range for the next daily leg is projected to be between $51,000 and $49,000, with a pivotal level at $63,800 that bulls must target to reverse the daily trend.
However, there is potential to reverse this situation as “dip buyers” have returned, resulting in significant inflows into the US Bitcoin ETF market, supporting the Bitcoin price this week to prevent a deeper retracement with consecutive days of inflows to manage selling pressure from the German government’s holdings.
ETF Inflow Data And Bitcoin Price Performance
JPMorgan data shows that spot Bitcoin ETFs witnessed inflows of $882 million during the week ending July 11, with an average of $175 million per day, marking the highest inflows since May 23.
BlackRock’s IBIT ETF and Fidelity’s FBTC led the surge, attracting $403 million and $361 million, respectively. However, Grayscale’s ETF continued its trend of outflows, losing nearly $87 million after three weeks of outflows in the ETF market totaling over $1.1 billion.
Supporting the bullish outlook, crypto analyst CryptoSoulz conducted an in-depth analysis of Bitcoin’s price performance in July, finding that long-term holders have accumulated BTC, having purchased over 85,000 BTC in the past 30 days.
According to the analyst, this accumulation by long-term holders is a bullish catalyst for the price, indicating confidence in Bitcoin’s potential.
CryptoSoulz, similar to Jackis, suggests that Bitcoin is currently finding support in the higher time frame (HTF), anticipating a bounce from this level, particularly considering the recent bearish news.
However, the analyst further explained that if the Bitcoin price fails to hold above the $54,000 zone in the coming days, the next level of support is expected at $49,500.
When writing, the Bitcoin price stands at $58,300, surging merely 0.7% in the 24-hour time frame as BTC looks to consolidate above the aforementioned crucial levels.
Featured image from DALL-E, chart from TradingView.com