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    Home » BTC » Bitcoin Price Analysis: BTC Needs to Close Weekly Candle Above This Major Level

    Bitcoin Price Analysis: BTC Needs to Close Weekly Candle Above This Major Level

    Author: DanBTC916

    Last Updated Jul 31, 2021 @ 11:33

    BTC has definitely surprised market participants lately after a 10-day green streak, managing to break above $40K. Just overnight, BTC staged a last-minute rally and made the first daily close above the top of the trading range closing at $42.2k.

    img1 (2)
    Chart by TradingView

    Bitcoin Overcomes $40K

    On July 28th, 2021, the third-largest BTC whale transferred 3000 BTC to Coinbase, signaling near-term caution on price. As we reported, this has been a local top indicator on quite a few occasions in the past. The cryptocurrency then saw a minor correction from a high of $40.9k to a low of $38.3k.

    The bulls managed to stage a solid recovery, marking the first daily close above the 2-month long trading range between $30k and $40k. This is the first major step in transitioning from the accumulation phase back into bull market continuation.

    Throughout the impressive 10-day streak, BTC momentum on multiple time frames continued to trend higher, pushing above neutral zones. This is a very bullish signal of another large leg higher mid-term as these signals have flashed multiple times before in previous bull markets.

    Notably, when BTC makes 9 consecutive daily candles higher, this has historically led to mid-term rallies, as shown in the chart below.

    img2 (2)
    Chart by TradingView

    Previous resistances are now near-term support at $41.3k, $40.9k, and $40k. Ideally, these levels need to hold on a backtest.

    Confirmation Needed

    The recent price action is very bullish for BTC, but we have to wait for the weekly close for validation. Last week, BTC printed a weekly hammer candle, a signal of a potential reversal, especially after snapping back above $30k. The cryptocurrency needs to close at the highs this week to validate the pattern.

    Although near-term price action is bullish, BTC remains below resistance at the 200-day MA and the 21-week MA, both critical levels to reclaim. The technicals will turn very bullish if BTC can successfully close and stay above these levels.

    img3 (1)
    Chart by TradingView

    In aggregate, when considering bullish technicals, significantly improving momentum, bullish on-chain metrics in net outflow exceeding inflows, accumulation, and the recent drop in exchange reserves, BTC hash rate recovering, and record network user growth, the current set-up looks very favorable for the bulls.

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    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

    Cryptocurrency charts by TradingView.
    Tags: Bitcoin (BTC) Price
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    About The Author

    DanBTC916
    More posts by this author

    Dan is a cryptocurrency Onchain/Technical analyst at a Crypto Fund with 11 years of experience in equity markets and over 4 years in crypto markets. Dan’s background and deep understanding of Finance and Economics have sparked a deep passion for the cryptocurrency markets, especially in Bitcoin. Follow Dan on Twitter

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