Fresh data underscored the importance of current market levels as Bitcoin (BTC) bounced off $31,000 support on July 16.
There has been no movement on the Bitcoin markets as sideways trade has continued and a strong bear trend has yet to establish itself convincingly.
Is there no trip to $42,000?
According to data from Cointelegraph Markets Pro and TradingView, the bitcoin to dollar exchange rate has been continuously testing but has not yet broken beyond $31,000 on Friday.
Unconfirmed rumours that Bank of America had granted the green light for Bitcoin futures trading prompted a late jump to near $32,000 in the price of bitcoin.
In terms of the short-term perspective, market participants were divided, with popular trader Michael van de Poppe observing on Thursday that $31,000 represented something of a final frontier for Bitcoin — lose it and $29,000 or perhaps $24,000 would logically be the next levels to be reached.
Crypto Ed, a fellow trader, appeared to be indecisive on the day as well. At the beginning of the week, he had predicted that Bitcoin will perform a surprise rebound and reach its range highs of $42,000 before reverting downwards once more to threaten the $30,000 support level.
“BTC making new lows is invalidating the idea of continuation of that bounce,” he wrote in an update. Even a comedown for the U.S. dollar currency index (DXY), traditionally inversely correlated with BTC, is unlikely to help bulls significantly, he added.
Update on this ⬆️
BTC making new lows is invalidating the idea of continuation of that bounce.
I still think DXY should see a pull back but it’s doubtfull that such will move BTC to 42k.
Maybe there’s no hidden play in the charts and BTC is just terribly weak and I was crazy pic.
Twitter.com/3nr65V9y4Z— Crypto_Ed_NL (@Crypto_Ed_NL) July 16, 2021
Moreover, additional data revealed that there has been a significant amount of on-chain activity at the present pricing levels.
On-chain monitoring service Glassnode said that 9.93 percent of the Bitcoin supply traded between $31,000 and $34,300, a price range that was clearly of interest to both buyers and sellers.
“This is now convincingly the largest realised volume cluster since $12k,” the firm stated.
A few weeks ago, Cointelegraph pointed out that the amount of $30,000 represents a significant threshold in the eyes of both small and major traders, with their behaviour shifting from a “sell” mentality to a “buy” mentality in recent weeks.
Altcoins suffer as a result of mediocre sentiment
Meanwhile, a study at alternative cryptocurrencies revealed a general lack of bullish mood throughout cryptocurrency markets as the week came to a conclusion.
Most of the top fifty tokens by market capitalization suffered worse losses than BTC/USD, with some losing as much as 12 percent as a result of a lack of price triggers.
Ether (ETH), the most valuable altcoin, was on its way to a critical support zone of its own, around $1,800, when this article was written. Van de Poppe stated in a YouTube post on Thursday that the beginning of a new accumulation period was now “very likely,” This was prior to volatility returning to the market.
Altcoins’ difficulties were exacerbated by Bitcoin’s increasing dominance, which reached 46 percent on the day in question.