After falling below $20,000 for the first time since December 2020, Bitcoin is again back above $21,000. In June, the largest cryptocurrency by market cap experienced a sharp decline as investors sought to cut their losses. BTC’s performance in the market was quite mixed, going from losses to gains, with investors benefiting from continued dip-buying. A record-breaking spike in Bitcoin outflows over the weekend totaled 30,000 BTC, or more than $600M. This was a part of the removal of approximately 64,000 BTC from cryptocurrency exchanges since June. According to reports, the majority of these coins came via Coinbase Pro, and this transaction is the largest transfer of Bitcoin in the previous 35 days. At the time of this analysis, BTC/USD continues to trade above the $21,800 level after breaking the $22,000 key barrier during the session. Whales in Bitcoin hurried to buy the dip in the hopes that a positive momentum would follow, which is what was thought to be the cause of the surge in selling pressure.
Key Levels
Resistance Levels: $28,000, $25,000 $23,000
Support Levels: $20,000, $16,000, $12,000
BTC/USD Daily ChartTechnically, after recovering from the low of $17,567, the pair’s major objective is to return to the psychological threshold of $30,000 and beyond. In light of the most recent bounce from the June confluence zones, the rebound acted as the basis for an upside continuation chart pattern.
However, any movement below the weekly swing lows, or $18,755 zones, might support the retracement theory and push the pair down to the $17,590 low levels. Any additional buying in the immediate future should pave the way for a move to the $25,000 resistance area.
BTC/USD 4-Hour ChartThe BTC/USD trend is stable on the 4-hour chart following its recent break past $22,000, and the intraday bias is currently consolidating. The recovery from lows could continue with a test of the next barrier close to the 4-hour moving average (MA 200). The trend might be positive as long as the $20,000 confluence level holds.
A break above the minor resistance level of $23,000 on the upside could allow a retest of the $25,000 level as the bias changes higher. The $22,000 breakout could mark the beginning of a stronger rebound from $17,590. Meanwhile, another breach of the $20,000 zones could result in a bigger drop.
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