After being rejected, Bitcoin is now back in the $20,000 range. The cryptocurrency has been displaying some strength during today’s trading session despite a spike in the U.S. dollar which signals danger for risk-on assets.
Similar Reading: Cardano releases a new update on Testnet. How will the price respond?| Cardano Releases New Update On Testnet, How Will The Price Respond?
At the time of writing, BTC’s price trades at $20,300 with a 2.2% profit in the last 24 hours. Material Indicators data (MI). recordsAn increase in purchasing pressure from Bitcoin Whales, with orders exceeding $1,000,000 (brown in chart below).
Over the past week, BTC has been steadily falling in value and large investors have started to hold it. BTC Whales may have been planning for bullish continuation. At the time of writing, every investor’s class except retail is jumping into BTC’s price action.
#Bitcoin #WhaleWatching pic.twitter.com/BOYAEABpyC
— Material Indicators (@MI_Algos) July 5, 2022
For any possible short-term upside risk, cryptocurrency should break through $20,500. To clear that gap, it must also remain over $22,000.
Material Indicators records over $20 million in asks order for BTC’s price at around $20,500 until $22,000 alone. These levels are the lowest resistance, and $24,000 is the highest resistance.
MI expressed concern about the possibility that BTC was being accumulated by large investors in the hope of seeing a greater upside move.
According to CVD and the FireCharts heat map, the BTC price has been rising since May 18, when the dump was made at $17.5k. This is too early to confirm this accumulation phase. The time will show.
US dollar could be at the heart of the price movement. The dollar has moved aggressively to the upside to reach levels not seen since 2003 and may be retesting previous lows.
If these levels fall, the DXY Index could move to the 105 or below 100 area. Thus, providing some more room for BTC’s price to reclaim higher levels.
Bitcoin Indicators Suggest Bullish Continuation
Quantum Economics analyst Jan Wüstenfeld indicated that BTC’s Reserve Risk dropped to 0.001, a metric used to measure long-term holders’ conviction. Bitcoin’s Reserve Risk was at its lowest point in 2015, just before the uptrend.
Read Related Reading| Bitcoin (BTC) Claws Back To $20,000, First Time In 5 Days
Currently, there are macroeconomics factors that could hurdle BTC’s price reclaim of previous highs. The current region could prove to be an important accumulation area for the next months. It is also a great place to use a Dollar Cost Average strategy (DCA). Wüstenfeld said:
Bitcoin reserves risk is now below the green box. This happened in August 2015, the last time it was. The macro conditions make this cycle different than other cycles. This is something we can see in our indicators.