This Respected Crypto Analyst is Betting on an Imminent Bitcoin Breakout
Over the past weekend, bitcoin formed a decent support base at $32K and gained momentum above the $33.5K resistance zone. The price even broke above $34,000 to move into a positive zone, giving traders hope that a breakout was imminent.
The BTCUSD pair formed a high near $34,600, but the bulls failed to gain more traction above this level. The largest cryptocurrency by market cap has now reversed much of the weekend gains after closing below a key moving average. It is currently correcting gains and has dipped over 2% to trade for 33,260 during press time.
The good news is that crucial support is back after bulls managed to reclaim the $33K level on Monday. However, traders might have to wait a while longer for bulls to mount a fresh breakout.
Analyst Rekt Capital views the recent price action as bearish, noting in a tweet that the weekly close below the multi-month Higher Low (HL) could usher in further losses this coming week.
Despite the disappointing weekly close, veteran trader Michaël van de Poppe is forecasting another bitcoin surge this week.
“I would not be surprised if Bitcoin is going to trade around $38,000 during the days of this week,” he stated in a recent video update.
A Look at Bitcoin Fundamentals in Coming Weeks
There are several factors that bitcoin traders should consider when trying to predict where the price could go next. For one, spot market traders can be upbeat about the prospect of bulls reclaiming $33K after a bearish period last week. Regarding this bullish development, Rekt Capital noted in a subsequent tweet that “BTC is doing all the right things to reclaim this trendline as support.”
In addition, several fundamentals could either sustain or delay a BTC comeback in the coming days and weeks. First, monitoring resources data released on July 12 shows that the BTC hash rate stabilizes as miners displaced from China set up shop elsewhere. This development indicates that the recent mining turbulence is slowly grinding to a halt.
Another essential factor to consider is the multiple unlockings of over 40,000 bitcoins from the Grayscale Bitcoin Fund scheduled for this month. The release of the coins that have been locked up in the fund for six months has raised concerns that it could cause downward pressure on the bitcoin price.
According to a tweet by on-chain statistician Willy Woo, the unlocking of massive amounts of BTC is bearish, as it could increase selling pressure in bitcoin spot markets.
BTC Investors Have Reason to Be Optimistic
Despite mixed BTC fundamentals and Grayscale worries, there is the hope of an upside resolution for the flagship cryptocurrency.
For one, the bitcoin hash rate is quickly coming back to stable levels, according to investor Klaus Lovgreen. Moreover, the coin has maintained its trading range above $33K after a disappointing weekly close, leading some analysts to bet on an imminent breakout rally.
Finally, BTC is experiencing reduced sell-side pressure as BTC inflows to known wallets and exchanges experience a 50-day drop.