Over the weekend, the price of Bitcoin continued to recover, but at the beginning of the week, having approached the resistance level of 21,600, it began to slow down. On June 21, the price of Bitcoin failed to overcome this resistance level and rolled back down. The same thing happened yesterday. The BTC price reached a high of 21,800 and pulled back down. This time, Bitcoin felt support in the 21,000 area. It is a positive signal since we can say that the strong support level has moved higher. During the Asian trading session, the BTC/USD pair tried to recover again. It even managed to get close to the 21,500 mark but met with strong resistance and pulled back. At the time of publication, the BTC/USD pair is trading around 21,200.
The market gives mixed hints
In addition to the fact that the situation in the cryptocurrency market has calmed down a bit, we finally saw another bullish weekly candle. And as analysts say, some interesting events suggest a mixed outlook for the near future of Bitcoin.
The Glassnode service records the low supply of Bitcoins on exchanges. It is at the level of 2018. As we know, Bitcoin outflow from exchanges and low supply levels are bullish signs for the price of Bitcoin.
In addition, according to Glassnode, the number of addresses holding more than 10,000 BTC has reached 100. It indicates an increase in the number of large holders. It would seem that these events hint about future rise in the price of Bitcoin. But on the other hand, we see a decline in Bitcoin trading volume. And this negatively affects prices. In addition, Bitcoin miners began selling their coins. As a result, we have an ambiguous situation, which gives a mixed forecast for the future price of Bitcoin.
If you look at the forecasts of leading analysts, they also differ. For example, Tim Draper expects the BTC price to rise to $250,000 by the end of the year. Fred Ersam, the co-founder of Coinbase, is also very optimistic about the future of Bitcoin.
What the chart says
We can say that the BTC/USD pair is holding above the 100-hour moving average. And since June 23, BTC/USD has risen well above 20,000, moving support level to the 21,000 area. However, the nearest support level in the form of a 100-hour moving average is in the 21,150 area. If the BTC/USD pair cannot hold above this level, we will see movement to the 21,000 area. A downward break of this level will send the BTC/USD pair to the 20,750 area. A moving below this level will increase pressure on the bulls. We do not rule out that the BTC/USD pair may drop to the 20,000 area.
If the bulls manage to keep the BTC/USD pair above 21,000, we will see new attempts to overcome the resistance in the 21,500 area. A solid move above the 21,500-21,600 area will allow the BTC/USD pair to approach the 22,000 mark.