Bitcoin traders are at odds about where BTC price may head after it failed to flip the $40,000 level to support.

The rumor that Amazon would accept cryptocurrency payments sparked a wave of bullish enthusiasm across the crypto market earlier in the week but now this sentiment has begun to wane as Bitcoin (BTC) bulls face stiff resistance at the $40,000 level. 

Data from Cointelegraph Markets Pro and TradingView shows that bears have managed to fend off multiple attempts to flip the $40,000 level to support and defense of this zone continued on July 29 as Bitcoin's stagnant price action and added to concerns that the price could fall back to last week's $35,000 to $30,000 range.

BTC/USDT 1-day chart. Source: TradingView

Here’s what analysts and investors are saying about the recent developments in Bitcoin’s price.

The 21-week EMA marks the line between a bull and bear market

Bitcoin's rapid ascent from $31,000 to $40,925 lifted the price near its 21-week exponential moving average, a level that is widely considered as a bull market indicator according to pseudonymous crypto Twitter analyst Rekt Capital..

As seen in the tweet above, the 21-week EMA is currently near the $40,000 price level, effectively becoming the ‘line in the sand’ that separates bulls and bears.

One of the responses to the above tweet offers a word of caution for overly bullish traders because similar moves in the past were followed by lower lows and an extension of bear market conditions.

BTC/USD 6-day chart. Source: Twitter

As shown by the yellow circles in the chart above, previous instances of the price breaking above the 21-week EMA have resulted in a reversal that leads to a retest of lower lows in the following weeks and months.

Bitcoin whales remain greedy while others are fearful

One group of market participants who have shown little evidence of indecision are Bitcoin whales, who have embraced Warren Buffett's mantra to “be fearful when others are greedy, and greedy when others are fearful,” by buying up low-priced BTC as weaker hands tap out.

According to data from Santiment, an on-chain and behavioral analysis platform, whale wallets have accumulated 130,000 BTC in the past four weeks as the price of Bitcoin traded below $35,000.

With such heavy accumulation being seen in the lower $30,000 to $35,000 range, some analysts have suggested that whales may attempt to orchestrate another pullback in price so that they can continue to accumulate.

Long-term cycles offer hope

When near-term confusion prevails, sometimes it's best to take a step back to see the bigger picture of where the market is and what possibilities the future holds.

According to Inmortal UP ONLY, a pseudonymous Twitter user, Bitcoin's four-year cycle is currently about 65% through its bull-market phase and the trader predicts a top at $150,000, which will be followed by a correction to $32,000.

Bitcoin price in four-year cycles. Source: Twitter

For traders and holders that prefer to operate on a longer time scale, there remains plenty to be optimistic about in the future for and experienced market participants know the price moves seen over the past few months are part and parcel of the normal progression for Bitcoin.

Further confirmation of the long-term perspective was offered by Ecoinometrics, who compared Bitcoin's current post-halving price action to performances in the previous two halvings.

asdada

As shown above, the current price of BTC is well below the average growth of previous cycles, indicating that the BTC has some “catching up to do” if it will achieve a similar trajectory and reach a new all-time high above $100,000.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP