Bitcoin Demand Dries up at a Higher Price Level as It Pauses Above $20,724 Support – On July 26, 2022
On June 26, BTC/USD failed to sustain above $24,276 high as it pauses above $20,724 support. Bitcoin is recovering as buyers push the cryptocurrency upward. The recent decline pushes the BTC price below the moving average lines. Bitcoin is trading at $21,152 at the time of writing.
Bitcoin Price Statistics Data:
•Bitcoin price now – $21,152.20
•Bitcoin market cap – $403,992,842,656
•Bitcoin circulating supply – 19,104,456.00 BTC
•Bitcoin total supply – $443,729,725,349
•Bitcoin Coinmarketcap ranking – # 1
Resistance Levels: $50,000, $55, 000, $60,000
Support Levels: $25,000, $20,000, $15,000
Bitcoin (BTC) price has declined to the $20,724 psychological price level on July 26. On July 19, buyers could not keep the price above the $24,276 resistance level. The bears are strongly defending the overhead resistance level which led to the current decline. The largest cryptocurrency is still trading below the moving average lines. The bears will have the advantage of pushing the coin further downward in the bearish trend zone.
Bitcoin will recover if price breaks above the 21-day line SMA and later above the 50-day line SMA. This will enable Bitcoin to rise and retest the $24,000 overhead resistance. Bitcoin will resume upside momentum and rally to the high of $28,000. The bullish momentum will extend to the high of $30,000 price level. However, if the bears continue the selling pressure and break below the $20,724 support, the downtrend will resume. Bitcoin will decline and revisit the previous lows below the $20,000 support.
‘Extreme Demand’ for BTC at $20K Creates a New Group of Short-Term Holders
According to Glassnode, the market still needs to recover after the conclusion of sell-offs. From the Week OnChain Newsletter, Glassnode has indicated that the psychological price levels from $40,000 to $30,000 to $20,000 have created new groups of short-term holders (STHs). The new STHs bought during the drawdown have not been sold as Bitcoin declined to the low of $20,000 price level. Glassnode noted that the newly-minted STHs are price-insensitive buyers with more self-belief in Bitcoin.
Their conversion from an STH to a long-term holder (LTH) have enabled them not to sell for at least 155 days, would help confirm this: “It would be constructive to see these STH held coins at the $40k-$50K level start to mature to LTH status over coming weeks, helping to bolster this argument.”According to the report, this is the same duration that LTHs experienced during the 2018 bear market. This will mean that losses are being locked in by LTHS which, if the previous argument holds, means that the new buyers have less price sensitivity than the cohort who sold. It implies that they will become the newest group of LTHs.
Meanwhile, Bitcoin risks further decline as it pauses above $20,724 support. The Relative Strength Index for period 14 has indicated that the cryptocurrency is in the bearish trend zone and capable of further decline.
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