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BTC price gets a $31,000 boost, but like last week, Bitcoin bulls fail to hold it; is this classic “re-accumulation?”
Bitcoin (BTC) staged a fresh breakout attempt into July 11 as the battle for yearly highs stayed hot.
BTC/USD 1-hour chart. Source: TradingView
$31,000 reappears in BTC price “leverage crunch”
Data from Cointelegraph Markets Pro and TradingView showed BTC price briefly passing $31,000 before the July 10 daily close.
In a copycat move, seemingly with last week’s snap higher for inspiration, BTC/USD managed to approach resistance before momentum waned, subsequently falling back over $800.
Some form of continuation did set in thereafter, and at the time of writing, Bitcoin traded around $30,500.
For Michaël van de Poppe, founder and CEO of trading firm Eight, the overnight move had all the hallmarks of a “leverage crunch.”
“The markets just continues chopping,” he told Twitter followers in his latest update.
“Bitcoin had a leverage crunch in the past 24 hours, taking out all the highs & going back to the start in one go. The only difference between now and Thursday? No new lows have been made. $30,200 supporting. Don't get chopped out!”
BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter
Popular trader Crypto Daan compared recent behavior with the “Bart Simpson” style chart features from before, where BTC price would spike to a plateau and hold there, only to retrace the full run later. Currently, however, Bart has been replaced with a structure reminiscent of the Burj Khalifa.
#Bitcoin In previous cycles we had "Bart Moves".
This time around we're getting "Burj Khalifas" everywhere. pic.twitter.com/87S0axbKWF— Daan Crypto Trades (@DaanCrypto) July 10, 2023
Meanwhile, trader and analyst Rekt Capital flagged $30,600 as the level to flip.
“BTC is now pressing past the ~$30600 Ascending Triangle resistance. But it’s key to note that $BTC has pressed past this level before only to form an upside wick,” he said during the overnight run to $31,000.
“So BTC needs to turn the ~$30600 into support in the coming days for BTC to confirm its breakout.”
BTC/USD annotated chart. Source: Rekt Capital/Twitter
“Re-accumulation” as usual
Bitcoin nonetheless remained in a familiar range in play for multiple weeks.
Related: CPI meets low BTC supply — 5 things to know in Bitcoin this week
In the latest edition of its weekly newsletter, The Week On-Chain, analytics firm Glassnode suggested that this was characteristic of Bitcoin price cycles.
“Bitcoin data often displays strangely repetitive patterns cycle after cycle. In the 2021-22 cycle, the $30k price level formed somewhat of a ‘mid-point,’ and was tested several times both from above and below,” it stated.
“A very similar level was observed in 2013-16 around the $425 level, and again in 2018-19 at approximately $6.5k.“
Bitcoin cycle mid-point comparison chart (screenshot). Source: Glassnode
Glassnode added that “re-accumulation” was the tag that best fits the nature of the current BTC price action.
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