Bitcoin officially surpassed $ 10,400 on July 27, pushing it past a multi-year range. Traders are now confused about where the bitcoin (BTC) price will go, as many indicators and data points show mixed trends.
Opinion on Bitcoin and cryptocurrency has been positive since April. The US controller's office has given banks permission to use cryptocurrency services, institutional investors have continuously invested in bitcoins and other cryptocurrencies through Grayscale, and recently Tether (USDT) has experienced the largest influx in eight months.
The combination of strong underlying regulatory and infrastructure factors seems to have improved the perception of Bitcoin as a mainstream. This coincided with an increase in liquidity as a result of high pin flow and a recovery in open interest in the futures market. The increase in Tether flow is an important calculation, as it is the largest stable currency in the cryptocurrency market. The figures show that the demand for stable currencies is increasing, which indicates an increased desire for cryptocurrency.
Several cumulative factors may have spurred the demand for bitcoin in recent months. Since April, the US dollar has fallen against other major reserve currencies. Investors such as billionaire Ray Daleo have pointed to the ongoing dispute between the US and China as an important factor. As the US dollar fell, the price of gold rose. A historically weak dollar has weakened the results in the stock market, and theoretically strengthened gold. Given the recent price correlation between gold and bitcoin, there is a possibility that a weak dollar could indirectly benefit BTC.
Depending on the market structure, traders expect the price of Bitcoin to fluctuate in the near future. BTC broke the critical resistance level of 10,500 dollars. After such a strong, bullish price development, a certain stability will calm the market. Mikael van de Poppe, a full-time trader at the Amsterdam Stock Exchange and a shareholder in Cointelegraph, said bitcoin could see a new range soon. Given that $ 12,000 has served as strong resistance in the past, Van de Pap suggested that a range between $ 9,700 and $ 12,000 could be achieved.
Bitcoin has also seen explosive bullish price actions as trading volumes went up with it. According to Skew, July 27 was the second biggest day in bitcoin history. When BTC breaks out of the all-time high, here is an overview of bullish and bearish scenarios that may affect the price in the short term.
Bitcoin bullish scenarios in the short and medium term
Some traders and investors expect Bitcoin to continue to rise. According to a cryptocurrency trader known as Ethereum Jack, BTC recently experienced a clear breakthrough. It has recorded the fifth peak of the Samad resistance level since September 2019. The trader emphasized that Bitcoin's price development could be exaggerated if it resumes the rise, but noted that it has all the characteristics of an extended trend:
$ BTC provides a cleaner setup to retry the penetration I've been looking at for quite some time, while each corrective wave since 4K has been vertically assembled.
Cryptocurrency trader Korykh A.K. said Bitcoin currently has three bullish arguments. First, the 0.618 Fibonacci level, measured between $ 9300 and $ 11,421, should stabilize. The 0.618 level is an important level in the Fibonacci retracement system and usually leads to a trend reversal when it is broken. Second: the $ 10,400 level as a strong horizontal support. Third, as long as the $ 10,170 level is maintained, the argument for a higher decline remains unchanged.
Simply put, Koroush AK believes that if the bitcoin price stays above $ 10,170, $ 10,400 and $ 10,622, the price trend will remain bullish. The $ 10,170 level or the lowest level is of particular importance in technical analysis as it indicates a strong bullish trend. An upside-down pattern is formed when the lowest low of an asset is higher than previously low.