Bitcoin (BTC) bounced quickly from the resistance line, holding lows during the Asian trading session on July 30 after the BTC price dropped below $4,000.
BTC price fails to secure major support
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD is trading around $66,500 around the daily opening price.
The previous day was volatile across the board. Bitcoin initially soared to $70,000 but failed to hold on. Instead, it fell about 6% in a matter of hours, a familiar sequence of events.
As Cointelegraph reported, the incident resulted in $2 billion worth of BTC being stolen from wallets linked to the U.S. government.
The deal stands in contrast to pledges made by presidential candidates over the weekend to use the funds to build a strategic reserve or inventory of bitcoin.
William Clemente, co-founder of cryptocurrency research firm Reflexivity, described the timing as “no coincidence.”
He predicted that BTC price action will be “a little bit higher in the short term and then probably higher after the summer.”
In response, Keith Alan, co-founder of trading resource Material Indicators, hoped that bulls could make a comeback to protect the uptrend line on the daily timeframe.
In his subsequent comments on X, he argued that any move higher than what was seen this week, specifically above $72,000, would depend on bulls first flipping the 2021 all-time high of $69,000 as solid support.
“That is the HH that the bulls need to get rid of before BTC moves towards the ATH, and while I think it will eventually come, I don’t think we will see a sustainable move to a new ATH until we validate the R/S flip at $69,000,” he wrote.
Popular trader Roman focused on his short-term BTC price target, which was to drop to $60,000.
He predicted that if the market declines to this level, sentiment will force a short squeeze, which could push BTC/USD back to the upper end of its long-term trading range.
“We are targeting 64k and 60k respectively. It shows bear divisions that could potentially set up a DT reversal,” he confirmed.
“I think sentiment will be extremely bearish at this level and then rally again.”
“After touching 70K yesterday, Bitcoin sold back into the range I was looking at yesterday,” fellow trader Mark Cullen added in his X analysis.
“Now the question is whether the trendline and golden zone will bounce to form HL or $BTC will bounce to form LH and roll over to the range low I was trying to reach.”
Bitcoin Traders Expand Withdrawals from Exchanges
In a recent analysis, on-chain analytics platform CryptoQuant noted that withdrawals from exchanges are “increasing.”
Related: US National Debt Tops $35 Trillion — 5 Things to Know About Bitcoin This Week
Contributing analyst CryptoOnchain points out that the average BTC amount per exchange withdrawal transaction is increasing.
“Despite the fact that Bitcoin has been in volatile territory since February,” they wrote in an attached commentary.
“Increased Bitcoin outflows could be a positive signal for future price appreciation and a possible resolution of the volatility range.”
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.