Bitcoin (BTC) was looking to retest its range high at the Wall Street open on July 16 as the market ignored the Mt. Gox BTC move.
Bitcoin Hangs in ‘Classic Distrust Rally’
According to data from Cointelegraph Markets Pro and TradingView, BTC price has recovered its strength and started a new journey towards $64,000.
Although still down around 1% overall since the daily open, BTC/USD has shown resilience despite billions of dollars worth of coins being withdrawn from cold wallets linked to the shuttered exchange Mt. Gox.
While some have dismissed the market’s initial knee-jerk reaction to the trade, some popular traders have argued for caution.
They warned that while Bitcoin has risen more than 10% since the weekend, there is no guarantee that the gains will continue.
“I can see arguments for both scenarios at the moment. The LTF impulse at 58k could have been the bottom, or this could just be a deviation/fake action to gather momentum to break out of the low,” Credible Crypto wrote in part of a post on X (formerly Twitter).
Meanwhile, Daan Crypto Trades warned that a BTC/USD drop below $60,000 would be “unfavorable.”
“So far we’ve seen a solid disbelief rally. Those who were allocated have felt a bit euphoric, but those who didn’t expect so much short squeeze and such a quick move have reacted in confusion,” he told his X followers.
“I think a retest of 59-60K would be bad and show weakness. Technically it’s a good level and if the chart holds it should be fine. But in reality these kind of ‘perfect retests’ rarely happen and are often just a sign of weakness.”
Analysts Underscore Importance of Bitcoin Range Recovery
But looking a little further afield, popular trader and analyst Rekt Capital argues that a significant trend shift has already occurred.
Related: Dip Buy? Bitcoin Institutional Investors Add 100K BTC in One Week
“The reaccumulation range has been successfully restored,” he explained, referring to Bitcoin’s trading range in the weeks following the April block subsidy halving.
“The importance of this recovery cannot be underestimated.”
Michael van de Poppe, founder and CEO of trading firm MNTrading, claims that the all-time high will be retested within the next two and a half months.
“$BTC is back in the range. There was a divergence below the range lows, but it has rallied back into the range over the last few days,” he added, summarizing X with an explanatory chart.
“As long as $60,000 holds, we expect it to continue to move toward an all-time high in the third quarter.”
Cointelegraph previously reported on an even bolder BTC price prediction from hedge fund trader Josh Mann, who bet that a new all-time high would be reached before the end of July.
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.