Bitcoin has been stuck in a narrow range for the past few days, indicating that traders are not booking profits as they anticipate another leg higher. The crypto markets remain cheerful in the hope that a spot Bitcoin exchange-traded fund will see the light of day. Institutional investors seem to be using the dull price action of the past few days to accumulate Bitcoin.
CoinShares weekly report released on July 10 shows an inflow of $136 million into digital asset investment products last week. That takes the total inflow of the past three weeks to $470 million.
Bitcoin has been consolidating near the overhead resistance of $31,000 for the past few days. Several attempts by the bulls to clear this hurdle were thwarted by the bears but a minor positive is that the sellers could not sink the BTC/USD pair below the 20- day exponential moving average (EMA).
This indicates that the sentiment remains positive and traders are buying the dips. The upsloping 20-day EMA and the relative strength index (RSI) in the positive territory suggest that the path of least resistance is to the upside. If buyers thrust and sustain the price above $31,000, the pair may start the next leg of the uptrend. There is a minor resistance at $32,400 but it is likely to be crossed. The pair may then soar toward $40,000, where the bears are again expected to mount a strong defense.
Contrary to this assumption, if the price turns down from $31,000 and breaks below the 20- day EMA, it will suggest that short-term traders are booking profits. That could sink the pair to the 50-day simple moving average (SMA). Such a move will suggest that the pair may remain stuck inside the large range between $25,000 and $31,000 for some more time.
Lastly please check out the advancement’s happening in the cryptocurrency world.
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