Bitcoin will have a huge impact on the market if it successfully achieves what its indicators seemed to show. With BTC trading close to $ 40,000 right now, analysts are skeptical of what’s next. Popular analyst Michael van de Poppe recently analyzed the cryptocurrency market before marking the important levels that could determine the future price movement of BTC.
Bitcoin Golden Cross
This has also been analyzed and discussed in the past. In fact, a previous analysis had set the probable dates for the Golden Cross (GC) at the end of July and the beginning of August – a forecast that now seems to be coming true.
When the 50 MA (Moving Average) crosses the 200 MA, a Death Cross (DC) occurs – usually an indication of a decline / strong consolidation. A GC is seen when the opposite happens. While the likelihood of a GC was grim for most of the month, that GC could come true thanks to a weeklong rally.
After June 19, DC, the 50 MA continued to fall. However, with the tightening of the indicator, the GC is closer than it was before. This also opens up different price ranges for Bitcoin, each of which could aid or distract a bull run.
#BTC‘s fantastic recovery continues
And so the 50-day EMA continues to rise
– Rekt Capital (@rektcapital) July 28, 2021
Important zones to watch out for
First up is the $ 41,000 level. While many maximalists and investors expect BTC to break through $ 41,000 in the next few days, the analyst disagreed.
“We are still operating within the resistance … we will achieve some consolidation before we get a (bullish) continuation”
This sounds plausible, especially since any rally could result in a slight correction and for Bitcoin this correction could occur at either of these two levels –
- A decline towards $ 34.5,000 – $ 36,000 – higher lows in this area will only be the support Bitcoin needs to rebound moderately
- Higher Low at $ 32,6,000 – As critical support for the $ 40,000 rally, a higher low can serve as good support for another rally
According to Van de Poppe
“If these 2 zones [ 32.6k/34.5k – 36k ] hold, that would guarantee the price of Bitcoin or at least drive it up. “
In addition, the analyst claimed that any breakdown from these levels could cause Bitcoin to drop to $ 26,000. This would validate the China pump scenario.
Bitcoin’s on-chain metrics seemed to deviate from that prediction, however.
Bitcoin is not controlled by the Chinese
A simple observation of the price DAA divergence shows how BTC managed to finally break its 2-month downtrend. This outbreak is indicative of increased retail participation that follows the rise in miners’ participation.
According to the Miner Net Position Change, the miners are buying again because BTC has finally left the “The Great Migration” phase. These results also underscore the positive sentiment in the market that could protect BTC from a major collapse.