Bitcoin (BTC) remained stagnant at the opening of Wall Street on July 31, as analysis warned that the net was closing in for bulls. The price of BTC continued to display sideways behavior, with no major trend changes in sight. Although there was a brief surge above $29,500 after the weekly close, it failed to gather enough momentum to advance. Material Indicators, a monitoring resource, highlighted that the next significant level to overcome for bulls is $29,500, which was increasingly attracting sellers. The 50-day and 100-day moving averages (MAs) at $29,450 and $28,460 respectively, formed crucial trend lines for BTC/USD.
For several months, Material Indicators has emphasized the need for candles above the 100-week MA in order to consider a bull market breakout. Despite this, the market has not even tested it yet. Bulls, however, have managed to maintain the range for an extended period of time. The 50-day MA has been tested for eight consecutive days, and although it has held, resistance at $29.5k is replenishing. The question remains whether bitcoin will bounce from the $28s or extend to $25k and beyond.
Rekt Capital, a popular trader and analyst, pointed out that Bitcoin was channeling its behavior from early 2021 on weekly timeframes, mimicking its current cycle’s all-time highs. This development marks the first time since January 2021 that BTC is turning the black $29,300 level into support in a new uptrend. The process of retesting support at this level is seen as a positive sign for the market.
In terms of on-chain transaction volumes, volumes are currently at their lowest in over two years, according to Mikybull Crypto. This suggests that massive incoming volatility is on the horizon, which could potentially skyrocket BTC to a new level. Various market participants have been anticipating a volatile breakout in BTC/USD after weeks of minimal movement.
It is important to note that this article does not provide investment advice or recommendations. All investments and trading moves involve risks, and individuals should conduct their own research before making any decisions.
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