Bitcoin hits $ 40,000 after 6 weeks of absence, but activity in the chain is “slightly bearish”

Bitcoin (BTC) hit $ 40,370 on July 26, when a significant price milestone returned on a stable day of positive factors.

BTC price will increase by virtually 20% day-after-day

Data from Cointelegraph Markets Pro and TradingView present BTC / USD hit $ 40,400 earlier than consolidating late Monday.

The pair held onto earlier positive factors from the night time earlier than all day, circling round $ 38,000 earlier than one other rally to Wall Street.

Amid some comprehensible pleasure from buyers ready for the uptrend to lastly resume, Cointelegraph worker Michaël van de Poppe warned towards being overly optimistic on present ranges.

“Bitcoin is still showing strength, although sentiment picks up again when resistance approaches,” he stated Written simply earlier than they hit $ 40,000.

“The pattern has modified as the market hit greater highs. I feel we’ll nonetheless see HL at $ 34.5-36,000 in the coming weeks until there is a break of $ 41,000. “

That could be a breakout of an age-old trading vary that has lasted for greater than two months.

A look at the support and resistance levels on the major Binance exchange at the time of writing reveals relatively little buyer activity above $ 36,000 while leaving $ 41,000 for sellers.

Physical indicators that provide data for Binance added that it is important to consider moving averages when trying to understand current moves.

Support at 50 DMA, 200 DMA, and 21 WMA are key levels that fail like pic.twitter.com/r131CZWgtv

– Material identifier (@MI_Algos) July 26, 2021

Running on the “silent” chain can frustrate cops

While Monday’s gains were impressive, Van de Poppe isn’t the only one calling for a realistic assessment of the entire Bitcoin market.

Related: BTC Price Burns Bears Towards $ 40,000: 5 Things To Watch For Bitcoin This Week

In the latest edition of its weekly newsletter, The Week On-chain, data analytics firm Glassnode also highlights the need for on-chain activities to keep up with price developments in order to keep the market going.

“Overall, on-chain activity stays considerably declining and continues to be subdued,” the analysts wrote.

“Perhaps in this case, using the Bitcoin network will drive the price down. Ideally, new volatility and constructive price movements should stimulate demand for block space. If not, this could indicate that a more cautious framework is needed in the coming weeks. “

The final time Bitcoin interacted with the $ 40,000 mark was in mid-June throughout a quick retreat from decrease ranges.