Bitcoin saw a brief rally at the Wall Street open on July 24, as a popular analyst predicted a “tug-of-war” on exchanges.
Bitcoin ‘retreat’, core support remains
Bitcoin (BTC) price is up about 1% on the day, targeting $67,000, according to data from Cointelegraph Markets Pro and TradingView.
Despite the decline that some had expected, the major support level at $65,000 and the short-term holder realization price at $65,110 held.
The latter level, monitored by on-chain analytics platform Glassnode, represents the total cost base of Bitcoin speculators and has recently recovered to support levels that had been briefly lost.
Popular trader Zell told his X followers in one of his recent posts covering the 4-hour chart that “Bitcoin has successfully recovered from a major breakdown area.”
“The local market structure is firmly bullish and the market appears set for another test at $72,000.”
Zell added that according to data from on-chain monitoring resource CoinGlass, there is potentially $7 billion in short-term BTC liquidations available in the region.
As Bitcoin’s trading range narrows due to short-term markets, interest has shifted to a longer-term perspective.
“Bitcoin has now consolidated from its previous cycle high for the first time in 141 days,” popular trader Daan Crypto Trades told X.
“This is the longest time it has taken to completely break above a previous all-time high so far. In contrast, $BTC reached its all-time high before this cycle’s halving, which was much faster.”
Exchange BTC balance increases little by little
Meanwhile, Willy Woo, creator of on-chain statistics platform Woobull, pointed out two hurdles Bitcoin needs to overcome next, looking at bullish and bearish market factors.
Related: Bitcoin Expected to ‘Rise’ as First Buy Signal in a Year
This included payments to creditors of the then-defunct exchange Mt. Gox and the return of coins to the exchange.
“As for the bearish signal, we are seeing an increase in coins entering spot exchanges,” he wrote in a July 23 thread on X.
“What is noteworthy is that 50,000 BTC was transferred from MtGox to Kraken, and it appears that others are leading the way as they transfer coins.”
Woo also said the launch of a US spot ether (ETH) exchange-traded fund (ETF) could result in capital outflows from Bitcoin.
He argued that “some of the capital in the BTC ETF may rotate into the ETH ETF, and it is difficult to predict how much, but this is risky.”
As Cointelegraph reported, spot Ethereum ETFs saw net inflows of $107 million on their first day of trading, roughly one-sixth of Bitcoin’s first-day inflows in January.
“In short, there is a tug-of-war between supply and demand. I think the bullish factors are overwhelming the bearish ones,” Woo concluded.
“In the short term, if BTC breaks 73k, it will light a fuse that can short squeeze to 77k, and beyond that, there is nothing to impede price discovery.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.