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22.07.202116:09 Forex Analysis & Reviews: BTC storms $32,000 but market remains bearish: Analysis of horizontal bitcoin charts and forecasts

On July 21, bitcoin ended on a positive note near the $31,700 mark. The cryptocurrency returned to the safe zone and formed a local corridor for fluctuations. On July 22, bitcoin began with the consolidation of the price for the future retest of the $32,000 mark. As of 11:00 UTC, the asset continues to fluctuate in a narrow range of $31,500 - $32,000. Despite the local positive in the market, bitcoin failed to immediately overcome important resistance levels. Soon, the market situation may stabilize, which will lead to the resumption of a slow downward movement.

The cryptocurrency managed to make a rebound on July 21, and the market positively perceived the momentum for growth. The sharp increase in the quotes of bitcoin is also associated with several factors. First of all, the level of asset volatility, which scared off retail traders in mid-June, reached a local minimum. This had a positive impact on the audience of the cryptocurrency, and traders trusted the temporary flash of the coin. In addition, yesterday's market rebound coincided with an increase in the price of other speculative assets, such as oil. The movement of the stock and commodity markets for some time coincided with the cryptocurrency market, thanks to which there was a rebound. However, the joint movement of several markets was a local movement, and therefore the crypto market needs to demonstrate its own potential for growth.

As of July 22, no such trends have been observed. Bitcoin daily trading volumes remain at an extremely low level, in the region of $25.7 billion. And despite the upward trend in bitcoin trading volumes, bearish sentiment is still strong in the market. The price of BTC practically did not increase over the past day since the asset broke through the $32,000 mark, but immediately rolled back. The local dynamics of the price movement also remain extremely volatile. This indicates a gradual increase in the volatility indicator. Due to the narrow range of bitcoin fluctuations, its impact on the market is not so noticeable, but it will increase as bitcoin indicators move or the trading range expands. At the same time, the increase in volatility also indicates an influx of audience into bitcoin, due to which the number of speculative coins is increasing. In the four-hour chart, BTC/USD is showing small bullish impulses. The RSI is around 70 and the MACD is in the red.

Exchange Rates 22.07.2021 analysis

In the near future, the cryptocurrency will continue to fluctuate around $31,500 - $32,000. However, bitcoin is unlikely to gain a foothold above the round mark due to increased pressure from sellers. Also since the boundary of the downward movement zone passes at the value of $32,100. A breakdown of this mark will mean an exit from the local figure of the descending triangle and further movement to the next resistance zone in the area of $33,000. However, given the weak social activity in the market and the skepticism of the audience, bitcoin will need a powerful news impulse or investment to break through a difficult milestone.

Exchange Rates 22.07.2021 analysis

It is likely that the necessary positive news has already occurred, but the cryptocurrency reacts very modestly to it. We are talking about the performance of big investors in the crypto market. For example, Twitter founder Jack Dorsey said that the platform will start accepting payments in bitcoins from advertisers. Elon Musk also announced that his company SpaceX owns bitcoin, but did not specify how much. But more important news from the billionaire was a positive assessment of the changes in BTC mining, which means the resumption of accepting cryptocurrency as payment for Tesla services. At the same time, Musk did not specify a specific date for resuming cooperation.

The founder of ARK Invest also said that in the near future, cryptocurrency mining will become more environmentally friendly than the classic financial services market. However, the main news event that can give the necessary impetus to the cryptocurrency market will be the publication of Tesla's financial statements, scheduled for July 26. Recall that at the beginning of the year, the carmaker declared a multimillion-dollar profit thanks to the purchase of bitcoin. In the first quarter of 2021, this triggered a bullish breakout of bitcoin and contributed to the establishment of a historical maximum. Let's see what effect the reporting will have at the end of July.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Artem Petrenko,
Analytical expert
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