Market Watch

Bitcoin Price returns to Critical Pivot Zone as $33k stays Untouched.

On 14th July, the Bitcoin (BTC) was unable to crack the most awaited $33,000, which was a bounce from the traditional lows that were only delivered through modest progress. The Bulls faced major problems while reclaiming their long-lost levels of support as the $33,000 benchmark still is a strong foundation in the trading range of Bitcoin. The famous bitcoin pair roughly touched $31,750 overnight. However, there came a sharp turn when the Bitcoin produced a very high $32,970. This clearly shows that the $33,000 mark was still untouched and did not come in reach. 

Talking about the renowned trader named Michaël van de Poppe, it was critical to hitting the upper level from $32,600. He was struggling hard to hit the targets higher in the range of trading, but it was a difficult target to meet. In his later Twitter updated, he commented: 

“Many altcoins are making double bottom tests. Great!” 

At the moment of writing, the famous Bitcoin circled $32,800, followed by repeated struggles for cracking the target of $33,000. The Binance buying and selling levels showed great support for hitting the target of $33,000, but soon the resistance started fading for the mark as it seemed impossible to be met. As per Twitter, the strong hands manage to scoop liquidity at times.

There were high hopes and expectations a day before the Bitcoin bill was being put forward before the Paraguay government. Unfortunately, the expectations didn’t get the outcome that was desired. Although the information about the legislation is a bit shady, the experts and optimists believe that the country might be wanting to follow in the footsteps of El Salvador. They might win a chance to make Bitcoin a legal tender and make the process to buy Bitcoins seamless in the long run. 

Apart from the network fundamentals, there wasn’t much to be written for the bulls to get leverage at that moment, as there was still a waiting game in terms of investments from the big and small fishes in the market. The investors were yet to show the actual price in action. The Bitcoin trade has been recorded at 59% less than the BTC model of stock-to-flow target price. In the recent analysis, as per William Clemente, there might be a prominent lag in the price response of Bitcoin. In Twitter, he further added: 

“Vice versa. Price can sometimes lag the accumulation flows. For example, in January or September 2020, we had a bull div, not nearly this size, though.”

He further revealed that in March 2020, the same scenario occurred, but there have been the micro driving forces that can override all the effects. He also pointed out Bitcoin’s liquid supply ratio (LSR) chart, which signaled the BTC movements with even the slightest history of selling Bitcoins. About the halving block subsidy of last year, he added that there had been no changes and the supply shock is still there. The LSR depicts that when the strong hands absorb Bitcoin’s actions, the Bitcoins seem to diverge farther away from the original price.