Bitcoin’s Shorter-Term Pain Is Long Term Gain? Why BTC Could See Green Days
21 Juli 2021 - 08:12PM
NEWSBTC
Bitcoin has seen some gains in the past 24 hours as bulls seem to
be making a stronger push. However, funding rates across exchange
platforms remain negative indicating a high bearish sentiment, at
least, in the derivatives sector. At the time of writing, BTC
trades at $32,236 with an 8.4% profit daily and a 2.7% loss in the
weekly chart. QCP Capital has recorded a “roller-coaster” like
price action as Bitcoin dropped from its current levels below
$30,000 on the weekend only to return to its past weekly open. This
period saw a rise in Bitcoin inflows to exchange platforms.
Contrary to popular belief, Senior Commodity Strategist for
Bloomberg Intelligence, Mike McGlone, believes that the $30,000
support zone exhibits maturation. As such, he clarified that
Bitcoin continues to be in an uptrend supported by bullish signals.
In the short term, the China crackdown on the crypto industry has
affecting BTC and could be the main source of selling pressure, but
in the long-term McGlone believes that this “confirms Bitcoin’s
revolutionary value”. The above was accompanied by what the market
perceived as two bearish events, QCP Capital added. First, the
Grayscale Bitcoin Trust unlock 16,240 shares and a high amount of
put option around the $20,000 levels. On the negative funding
rates, a metric that incentives traders to take long positions, QCP
Capital recorded a high degree of selling pressure from the
BTC-based futures. The first said: Consistent selling in both spot
and futures persisted into Monday and Tuesday along with several
more large prints in BTC and ETH Dec put options, pushing BTC to a
low of 29,301 on Tuesday. Ethereum And Bitcoin Display Strength
Amidst High Selling Pressure A bullish take on the current price
action is the resilience shown by Bitcoin and Ethereum’s price. QCP
Capital claimed that both cryptocurrencies have “tremendous”
support at the $29,500 and $1,750 levels. The firm added: (…) a BTC
close around 31,000 today would potentially form a powerful double
Demark 9 & 13 buy reversal signal. Additionally,
there is a potentially positive event risk tonight (…) “The B Word”
Could become an important bullish catalyzer for the markets.
However, one of its main participants, Elon Musk, has a “wild card”
reputation. In the short term, QCP Capital leans to the bulls’
corner as BTC’s price forming a triple-bottom with a strong bullish
divergence 2 days chart, as seen below. If Bitcoin managed to push
even further to the top of its current range and reaches $35,000
and $36,000, the firm expects a short squeeze beyond the $40,000
price point. QCP added the following in their report: The promising
bounce off the lows this morning reaffirms our 30-40k range view in
the medium-term. Implied vols should continue to trickle down as a
result.
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