Adjustment in Cryptocurrency for Promoting Health and Necessity
In the ever-evolving world of cryptocurrency, Bitcoin continues to dominate the scene. Last week, the digital asset saw a significant increase in open contracts for calls, with ETF flows indicating a Daily Total Net OI (Delta) of $346.36 million.
This upward trend is supported by InvestTech's short-term analysis, which shows that market participants have consistently increased their purchasing prices for Bitcoin, positioning the asset within an upward trend channel in the near term.
However, the past week has seen a downturn in the overall cryptocurrency market, which some analysts view as a constructive and essential adjustment. Despite this, Bitcoin at the forefront accounted for $159 million of the liquidated long positions.
Technical analyses suggest Bitcoin is currently consolidating around $116,000. Short-term support can be found near $116,400, while resistance is close to $117,300. This modest breakout pattern indicates limited immediate gains, but the market faces a critical zone in the $116,900–$118,865 range where either a pullback to around $98,000–$108,000 or a breakout to higher levels is possible.
The overall bullish bias in the medium term is driven by ongoing holding and ETF inflows, with key indicators such as RSI and moving averages suggesting both potential short-term retracements and continued longer-term uptrend. This optimistic outlook is shared by many analysts, who maintain an optimistic outlook for the long-term prospects of cryptocurrency.
The price of Bitcoin experienced a decline of approximately 2% on Friday, settling at $116,200. Despite this, the token is nearing a resistance level at $120,800, which could trigger a bearish response. Within the oscillators, four technical indicators, including Momentum (10), gave a 'sell' signal.
However, TradingView's overall BTCUSD technical analysis for the week ahead gives a 'buy' signal. This contradictory sentiment is also reflected in InvestTech's Algorithmic Overall Analysis, which gives Bitcoin a positive score of 79, with a 'low' rating for liquidity risk and a 'medium' rating for volatility risk.
InvestTech recommends holding Bitcoin in the one- to six-week timeframe. Even a drop to the $3.4 trillion level would still be interpreted as a strategic move to realize gains. Analysts at Citigroup project Bitcoin may reach $135,000 by year-end.
Meanwhile, the overall market capitalization of all cryptocurrencies in circulation momentarily exceeded $4 trillion in July. Smaller tokens experienced greater declines, with XRP and Dogecoin dropping over 5% last week.
On a positive note, daily net inflows amounted to $130.69 million on Friday, marking a healthy ETF reading. Bitcoin was trading around $119,600 on Monday, showing signs of recovery following the decline on Friday. The price of Bitcoin has experienced a significant increase following the favorable indication from the rectangle formation upon breaking through the resistance at $107,710.
In conclusion, Bitcoin appears poised for either a "Uptober" rally or a brief correction depending on market reaction to resistance zones in the next weeks. The overall sentiment remains bullish, with ongoing holding and ETF inflows supporting the asset's upward trend. However, the market's volatility and the potential for short-term retracements should not be ignored.
Read also:
- Exploring Harry Potter's Lineage: Decoding the Enigma of His Half-Blood Ancestry
- Elon Musk Acquires 26,400 Megawatt Gas Turbines for Powering His AI Project, Overlooks Necessary Permits for Operation!
- U Power's strategic collaborator UNEX EV has inked a Letter of Intent with Didi Mobility to deploy UOTTA(TM) battery-swapping electric vehicles in Mexico.
- Global Gaming Company, LINEUP Games, Moves Into Extensive Global Web3 Multi-Platform Gaming Network
