Bitcoin conservatives will soon understand why BTC price rise to $21,600 is misleading

Bitcoin conservatives will soon understand why BTC price rise to $21,600 is misleading

Bitcoin (BTC) hit 1-week highs on July 17, when traders were advised not to rely on BTC’s current price action.

Hourly candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

Binance Inflows Hit Multi-Week High

According to data from Cointelegraph Markets Pro and TradingView, the BTC/USD pair reached $21,600 on Bitstamp, the best performance since last Sunday.

Both rose further over the weekend, but still benefited from low after-hours liquidity as institutions were not present.

In general weekend performance should not be relied upon. We’ll see how it goes before tomorrow’s weekly close. — Rager (@Rager) July 16, 2022

With bitcoin prone to “false alarms” moving up and down under such conditions, there was little to believe that the current trajectory would hold as the weekly close approaches.

“Don’t let the noise of the crypto community change your view of how things really are,” said declared the same day to his followers the famous social media account Il Capo of Crypto, referring to stories from the crypto community Twitter.

“I’m not worried about this false alarm, still completely off the market, and you’ll soon see why.”

Traders are also preparing to exit the market, it seems, as the Binance exchange saw increased inflows in the 24 hours prior to this writing.

According to data still being compiled from blockchain analytics platform CryptoQuant, on July 17, inflows approached 17,500 BTC, the highest single-day figure since June 22.

BTC inflow chart on Binance. Source: CryptoQuant

However, some commentators remained optimistic about the short-term outlook. Cointelegraph contributor Michaël van de Poppe, who called for a break of $21,200 for the rally to continue, was granted his wish when the market rallied overnight.

“The total resistance is still there and I suspect the upside will continue. Critical barrier at $21,000 right now,” he had Explain before the movement.

As Cointelegraph reported, the $22,000s and the 200-week moving average at around $22,600 were among the targets for potential upside.

The latest data from the Binance order book via the Content Indicators analytics platform showed a new buying support wall clustered at the breakout point of $21,200, which is worth about $20 million.

BTC/USD order book data chart (Binance). Source: Content Indicators

The weekly close keeps the graphic story flowing

On weekly time frames, the July 17 close had the potential to be significant.

Also read: Bitcoin is currently in its longest period of “great fear”.

At $21,300, bitcoin would turn not only its second weekly ‘green’ candle, but also its highest weekly close since early June.

Chart of the weekly candle of the pair BTC/USD (Bitstamp). Source: Trade View

However, a $500 issue stood between this result and a continuation of the downward trend, since the July 10 close was established around $20,850.

This event, as well-known trader and analyst Rekt Capital noted at the time, marked a lower peak for the week, as well as “lower buying volume”.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and trading involves risk, you should do your own research before making a decision.

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