Bitcoin is trading above $63,000, rebounding from last weekend’s decline that lasted until Monday. The price defended the $60,000 support level and this level evolved into a historical landmark for the flagship cryptocurrency.
Bitcoin technical structure
Beyond the current price situation, Bitcoin’s technical structure reflects changes, suggesting the cryptocurrency may be preparing for an eventual reversal. Notable indicators on the Bitcoin weekly chart have coincided, confirming the earlier signals observed on the lower time frame.
Bitcoin’s momentum indicator, the Moving Average Convergence Divergence (MACD), is currently reflecting a clear divergence on Bitcoin’s weekly chart. This signal is in line with the cryptocurrency’s price movement since falling below $58,000 at the end of June.
Confirmed $BTC A reversal from the current price area would target the next notable resistance level at $73,500. This coincides with the 0.236 Fibonacci retracement on the weekly chart. However, the price first has to contend with the psychological level of $70,000.
$BTC Selling pressure is waning
It is worth noting that the selling pressure on Bitcoin is easing. Overall price structure $BTC The time frame on the chart reflects the decline in trading volume, especially since early July. This is consistent with on-chain data from Glassnode that shows Bitcoin’s daily net selling pressure has been declining since 2000. $BTC From June to 53 $BTC In July.
Current trends suggest they are long-term $BTC Holders are steadily transferring supply to new buyers. Since the spot cumulative volume delta remains negative, the current $BTC Bounces are not spot accumulations and can be caused by derivatives traders.
Key fundamental driving forces
Meanwhile, the two fundamental drivers behind the new Bitcoin trend are the new geopolitical tensions between the US and Iran and the resurgence of institutional policies. $BTC request. Spot inflows into Bitcoin ETFs have reached nearly $197 million over the past week, while new incursions in the Middle East have raised inflation concerns and pushed up the U.S. dollar index.
Meanwhile, a solid return to Bitcoin’s bullish momentum will require buy-in from spot traders and a reversal in industry-wide sentiment. To achieve this, Bitcoin may need to surpass $75,000. Before that, it paves the way for discussions about higher price targets and a return to the $100,000 area.
Related: Bitcoin rally stalls: Glassnode warns of thin liquidity and weak demand
