Bitcoin bounces off $ 30,000 while “likely” crossing the mid-range of $ 40,000

Bitcoin rebounded from the $ 30,000 support on June 27 and continued to sway with uncertainty that worries traders.

Data from TradingView shows that BTC / USD hit a high of $ 33,563 on Sunday.

Source: TradingView

The pair fell to $ 30,070 on Saturday, but luckily there has to be another drop below this significant psychological support after last week’s volatility.

However, this was not enough to boost traders sentiment as many believe that the price of BTC has not yet bottomed out. Trader Crypto_Ed_NL has tweet:

“Not everyone agrees to drop BTC and bring it to $ 26,000 by the end of the week to start the next bull run on Monday with a V-shaped rebound.”

For analyst Rekt Capital, the loss of bitcoins from its 50-week exponential moving average (WEMA 50) currently at $ 33,500 is cause for concern for the bulls.

The #BTC Recovery looks promising, but the 50 WEMA has not been reclaimed as support

Weekly closing price above ~ $ 33500 would be enough to save the 50 WEMA as a backup$ BTC #Crypto #Bitcoin https://t.co/rR1UbLjaoz pic.twitter.com/sMbYEMm9VM

– Rekt Capital (@rektcapital) June 27, 2021

“BTC’s recovery looks promising, but WEMA 50 has not yet been recaptured as support. A weekly closing price of ~ 33,500 USD will be enough to spin WEMA 50 as a support. “

At the time of writing, BTC / USD is trading at around $ 33,037, which sets the stage for a more optimistic start to next week.

Rekt Capital added that using Wyckoff’s analysis, Bitcoin could still rise another $ 10,000 to end up in the mid-range of $ 40,000 if the current wedge holds without collapsing.

BTC / USD Wyckoff distribution chart | Source: Rect capital

“Volatile, but trendy”

As always, the long-term outlook from experienced market participants suggests a different perspective than the poor intraday price development.

Among the sources of optimism over the weekend was PlanB, the creator of stock-to-flow pricing models.

“Bitcoin: short-term volatility, long-term upward trend,” he said Summary along with a chart comparing Bitcoin’s 200-week moving average (WMA 200) and its real upper limit.

BTC / USD, WMA 200 and Real Cap Chart | Source: PlanB

The 200 WMA is the most important “borderline” below which the spot price has never fallen below. Despite the recent losses, it continues to rise every month.

The move “will happen in the next few weeks”

In one Discussions Recently, technical analyst Will Clemente (author of the BTC by WC3 newsletter) quickly commented on his current price development for BTC on the Unchained podcast. According to his analysis, the recent decline in BTC is directly related to short-term holders selling their coins. However, long-term owners shopped to make up for the situation. This is one of the reasons he doesn’t care about the current bear market.

He believes the market is in a mid-cycle consolidation phase, although the traditional financial sector is forecast to decline below 50%. However, a similar trend was seen in 2013, shortly after the BTC slump.

“Bitcoin is undervalued in the eyes of experienced market participants and they are starting to buy cheap BTC. If you own such an asset, you should be following people who have been in the market for a long time. Overall, the people who have been in the market the longest are buying a lot right now. “

“Bitcoin is still in the middle of a bull market as long-term investors continue to rise to the top crypto asset.”

In the interview, Clemente highlighted a number of indicators that point to a strong trend reversal in the coming weeks.

Bitcoin Liquidity Supply Ratio | Source: Glassnode

Using the data above, he added:

“There is a clear bullish divergence, creating lower lows in price and higher highs in ratio. Strong people always buy more when prices fall. “

The second indicator is the SOPR, which is also showing a bullish divergence.

SOPR | Source: Glassnode

SOPR (Spent Output Profit Ratio) is used to measure the total market profit and loss for each trade. It does this by measuring the change between selling and buying prices.

The indicator also shows “higher highs in proportion and lower lows in prices”. In addition, she presented a similar picture in late January. The analyst added:

“The last time there was such a clear bullish divergence was at the end of January, when prices continued to rise sharply afterwards.”

In conclusion, he commented with a view to the longtime HODLer:

“The longholder’s strong hands wash away the blood baths”.

To conclude his analysis of the on-chain fundamentals, the analyst summarizes:

“These indicators may not predict any immediate price movements (in the next few days), but I think there will be a reversal in the next few weeks.”

You can see the BTC price here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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