Bitcoin
Bitcoin Price Trajectory Continues Bearish, $49,000 Liquidity Zone Approaches as Next Downside Target
Bitcoin price has recently shown signs of recovery, climbing back to the $58,000 level after hitting a five month low of $53,500. However, technical analysis suggests that the digital asset may struggle to overcome crucial indicators, potentially revisiting lower price levels.
In a recent publish On social media platform X (formerly Twitter), market expert Jackis highlights the D1 bearish trend indicator on the 12-hour chart, indicating the need for Bitcoin to reclaim the $64,000 zone to reverse the prevailing daily bearish trend.
Despite this cautious outlook, there are encouraging signs, including significant inflows into Bitcoin exchange-traded funds (ETFs) and long-term holders accumulating more BTC.
BTC struggles to break downtrend
Despite the recent recovery, Bitcoin’s technical analysis suggests that the bearish trend remains. Jackis emphasizes that even if the Bitcoin price makes a new leg higher to $60,300, the D1 Trend Indicator remains bearish unless BTC manages to recapture the $64,000 zone, which has already proven to be a major resistance for the bulls as BTC price failed to break it in its previous attempt on July 1.
According to Jackis’ analysis, the target for the next daily leg is projected between $51,000 and $49,000, with a key level at $63,800 that bulls must reach to reverse the daily trend.
However, there is potential for this situation to reverse as “dip buyers” return, resulting in significant inflows into US Bitcoin. ETF Marketsupporting Bitcoin price this week to avoid a deeper pullback with consecutive days of inflows to manage selling pressure from German government holdings.
ETF Input Data and Bitcoin Price Performance
JP Morgan data shows that spot Bitcoin ETFs witnessed inflows of $882 million during the week ending July 11, averaging $175 million per day, marking the highest inflows since May 23.
BlackRock’s IBIT ETF and Fidelity’s FBTC led the surge, attracting $403 million and $361 million, respectively. However, Grayscale’s ETF continued its outflow trend, losing nearly $87 million after three weeks of outflows in the ETF market totaling more than $1.1 billion.
Supporting the bullish outlook, cryptocurrency analyst CryptoSoulz conducted an in-depth analysis of Bitcoin’s price performance in July, finding that long-term holders have accumulated BTC, having purchased over 85,000 BTC in the last 30 days.
According to the analyst, this accumulation of long-term holders is a bullish catalyst for the price, indicating confidence in Bitcoin’s potential.
CryptoSoulz, similar to Jackis, suggests that Bitcoin is currently finding support in the longer period of time (HTF), anticipating a recovery from this level, especially considering the recent bearish news.
However, the analyst further explained that if the Bitcoin price fails to sustain above the $54,000 zone in the coming days, the next support level is expected at $49,500.
At the time of writing, Bitcoin’s price is sitting at $58,300, up just 0.7% over the 24-hour period as BTC looks to consolidate above the crucial levels mentioned above.
Featured image of DALL-E, chart from TradingView.com