Bitcoin Price Bounces Back To $57,000 Mark, As The Bulls Are Poised For An Upward Trajectory

Amid a mix of bullish and bearish factors in cryptocurrency markets, Bitcoin’s (BTC) price has bounced back to the $57,000 mark. Currently, Bitcoin is up 2%, with the token trading at $57,487. This price point represents a significant recovery from last week’s lows when Bitcoin slipped as low as $53,600.

The price of Bitcoin has fallen consistently over the past weeks, hitting a low of $53,600 on July 5, marking the first time the asset has traded below $54,000 since February. Most investors have begun buying the dips, which might cause the BTC price to increase in the coming days.

This comes after spot Bitcoin spot ETFs (exchange-traded funds) increased their holdings by 2,394 BTC worth over $135 million on July 8 amid ongoing selling pressure from the German government and Mt.Gox. Fidelity was the biggest buyer after a purchase of $2,077 BTC worth about $177 million. Fidelity now holds 170,764 BTC, worth approximately $9.7 billion. Meanwhile, Grayscale decreased its holdings by 475 BTC; however, it still holds 274,249 BTC, worth about $15.46 billion.

July 8 Update:

9 ETFs added 2,394 $BTC(+$135M).#Fidelity added 2,077 $BTC(+$177M) and currently holds 170,764 $BTC($9.2B).#Grayscale decreased 475 $BTC(-$26.8M) and currently holds 274,249 $BTC($15.46B).https://t.co/breOMb5Wu0 pic.twitter.com/nf36XMvgk8

— Lookonchain (@lookonchain) July 8, 2024

Bitcoin Statistical Data

Based on Coinmarketcap data:

• BTC price now – $57,487
• BTC market cap – $1.12 trillion
• BTC total supply – 19 million
• BTC circulating supply – 19 million
• BTC ranking – #1

The buying momentum in the Bitcoin price has been dwindling since June, when the bears capitalized on the death cross formed around the $68,084 mark. However, the bulls seem to have found support around $54,000, with the price rebounding to trade within the falling channel pattern.

The Bitcoin price is trading bearishly. However, the bulls are trying to break above the descending channel, targeting $63,557.

Based on the technical outlook, the Bitcoin price trades below the 50-day and 200-day Simple Moving Averages, with the $58,450 and $63,557 acting as immediate resistance keys. In the same way, the Relative Strength Index (RSI) remains subdued below the 50 mean level, currently at 44. However, increased buying pressure could cause the RSI to jump above the 50-mean level, invalidating the bearish sentiment.

On the other hand, despite the Moving Average Convergence Divergence (MACD) momentum indicator sitting in negative territory, it teases with a pending buy signal. This is reinforced by the MACD line crossing above the signal line, signaling a potential bullish trend. The cross above the signal line suggests that the short-term moving average rises faster than the long-term moving average. Most traders usually identify this technical occurrence as indicating that the token has entered a short-term positive cycle. 

Will The BTC Bulls Trigger An Upward Trajectory?

In a 4-hour chart analysis, the BTC bulls might capitalize on the falling channel pattern to stage a bullish rally above the $58-480, which coincides with the 50-day SMA. In a highly bullish scenario, the bulls might flip the 58,450 to support, which could trigger a bullish rally above the 63,557 resistance level.

As the RSI and MACD encourage investors to add to their positions, the BTC price could surge, potentially pushing the price to $67,411. Conversely, if the bears step in and the overall crypto market turns negative, the Bitcoin price might retrace to $53,563, which is a cushion against downward pressure.

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