Bitcoin (BTC) price gained another 5% over the past 24-hours to rise to a new daily high of $33,943. The top cryptocurrency has been consolidating under $40K for more than two months now, failing to solidify its position above $35K despite a couple of breakouts. BTC might be looking for a strong trend reversal as it has broken out of the daily RSI channel after 7-months.
— BitParabolic (@BitParabolic) July 23, 2021
The daily RSI channel was on a downtrend for almost 7-months and a breakout from it indicates the top cryptocurrency might see a much-needed price trend reversal to bullish.
RSI is a key indicator that is primarily used to check whether an asset is overbought or oversold. However, it also often signifies price trend reversals. Going by the current daily RSI value and break out, analysts believe Bitcoin could register a healthy bounce back. It would need to first overcome the immediate $35K resistance, conquering which the price could eye for the $40K-$45K range.
Bitcoin Exchange Supply Dips to 18-Month Low
As bitcoin eyes to break past the key resistance of $35K with a major trend reversal on cards, traders have started to move their BTC supply away from exchanges. The Bitcoin supply on exchanges reached a new 18-month low earlier today suggesting traders are expecting a price pump very soon. This also lowers the risk of a major sell-off.
👍 #Bitcoin is inching close to the then 18-month low of its supply on exchange ratio, which was hit back on Jan 2, 2021. As $BTC continues moving off exchanges during these suppressed prices, it’s a promising sign that markets have decreased selloff risk. https://t.co/DQzTx822Py pic.twitter.com/WVP7sfgnty
— Santiment (@santimentfeed) July 24, 2021
Bitcoin and most of the altcoins lost nearly half of their valuation during the biggest market sell-off of 2021 in May. Nearly $1 trillion was wiped off the crypto market in a couple of days. Since then the market sentiment has remained bearish for the majority of the time.
The recent B-Word conference also failed to move the price of the BTC despite Elon Musk revealing SpaceX owns Bitcoin and Tesla might very soon restart bitcoin payments for its cars. BTC did see a rapid bullish price swing of nearly $1,500 in the run-up to the event but lost the majority of the gains by the end of it.