The Bitcoin (BTC) price is still within reach, and traders are looking for signals that can provide insight into the next direction. Philip Swift, creator of LookIntoBitcoin analysis source, noted on July 9 that Puell Multiple “flew out of control this week” for only the fifth time in history. Swift said that if the index continues to rise, the price of bitcoin may follow.

Another positive outlook for Bitcoin came from Lex Moskovsky, Chief Investment Officer of Moscow Capital, who stressed that the price of Bitcoin traded below the target price expected by the stock allotment model by approximately 59%, the largest negative deviation in history. … Moskovsky said this could be a “great buying opportunity” for traders who believe in this model.

See daily market data for cryptocurrencies. Source: Coin360
In other news, it should be noted that the finance company Capital International bought 953,242 shares in MicroStrategy in the second quarter of 2021, according to documentation provided by the business intelligence firm to the US Securities and Exchange Commission.

Due to the large volume of bitcoins, MicroStrategy’s stock price reflects Bitcoin in many ways. Thus, the acquisition of Capital International indicates that institutional investors may have begun to position themselves for the upward movement of bitcoin.

However, not everyone is so optimistic. Scott Minerd, CEO of Guggenheim, takes a very bearish view of bitcoin and expects it to fall to $ 10,000.

Let’s examine the charts of the 5 best cryptocurrencies and find out the critical levels that can signal the beginning of a strong recovery.

Bitcoin has been trading in a tight range from $ 31,000 to $ 36,670 in recent days, indicating that traders are hesitant about the next direction. A fracture from a narrow area usually results in a sharp pull.

BTC / USDT daily chart. Source: TradingView
Both moving averages gradually disappear, and the relative strength index (RSI) trades near the midpoint, indicating a balance between supply and demand. If the bulls push the price above $ 36,670, it will be the first sign of strength.

The BTC / USDT pair can then rally to $ 41,330 and then to $ 42,451.67 as the Bears are likely to put up strong resistance. The outbreak of this resistance signals the possible start of a new uptrend.

On the other hand, if the price falls below the current level or upper resistance of $ 36,670, the bears will try to pull the pair back to $ 31,000 and then to $ 28,000. A break below this support zone will increase the probability of a resumption of the downtrend.

4-hour BTC / USDT chart. Source: TradingView
The 4-hour chart shows the formation of a descending triangular pattern that will complete after the break and close below $ 32,268. If this happens, the probability of a break below $ 31,000 will increase.

Conversely, if the bulls push the price above the downward line, it will invalidate the set of downward trend. Failure in a negative pattern is considered a bullish signal as it catches aggressive bears that have sold in anticipation of a crash. The pair could then increase to $ 36,670.

Moon / USDT
The LUNA token for the Terra protocol has been trading in the range of $ 7.96 to $ 3.91 since the end of May. However, the bulls pushed the price above the resistance in the July 9 series, indicating that demand exceeds supply.

LUNA / USDT daily chart. Source: TradingView
The moving averages have completed the bullish cross and the RSI has accumulated over overbought territory, indicating a trend reversal.

If the bulls keep the price above $ 7.96, the LUNA / USDT pair may start a new bullish trend. The first upward target is the downward line, as the bears will try to stop the uptrend again.

If the price breaks down from the downward line but bounces off the 20-day exponential moving average or $ 7.96, it indicates that a higher bottom is forming. Buyers will then try to resume the trend by pushing the price over the downward line.

Contrary to this assumption, if the bears lower the price below $ 7.96, it will indicate a lack of demand at higher levels. A break below the moving average opens the door for a possible fall to $ 3.91.

LUNA / USDT 4-hour chart. Source: TradingView
Both the moving average and the relative strength index slope up overbought territory on the 4-hour chart, indicating that buyers have an advantage.

Source: CoinTelegraph