Bitcoin price skyrocketed from $29,000 to over $40,000 and fell below the $39,000 mark. The BTC/USD pair started off with a fresh spike, taking it to major resistance but ultimately lacking the impetus to change its current pattern. At the time of writing, BTC is focusing on $39,819, having dropped as low as $39,300.
$40,000 Still Not Considered New Support for Bitcoin Price
The recent rise above $40,000 has injected a healthy dose of optimism into the crypto markets, and further evidence of this comes from the Crypto Fear and Greed index that has dropped from “extreme.” down to “neutral”.
According to crypto analyst Michael van de Poppe, BTC retracement is not only welcome but necessary to consolidate new higher highs and prospects for further breakouts.
“What you want to see after such a move is the price makes a higher low and you best want to see it happen in the range around $34,500,” he explained. He added: “Both sides of that for lower works are $32,500 and $36,000.
Furthermore, NorthmanTrader founder Sven Henrich recently took to Twitter to warn that intermittent summer rallies tend to be short-lived. The chartist isn’t willing to go any further when it comes to making a specific prediction, but he does state that another wave of weakness is possible based on the cryptocurrency’s historical performance.
“Not a prediction, just an observation, but based on #Bitcoin’s seasonal history, intermittent summer rallies tend to be followed by some weakness. Some minors, some pretty pronounced,” he tweeted.
In recent years, the late summer protests have dwindled. On August 17, 2020, BTC surged to $12,469, but it fell almost 20% in early September. On August 7, 2019, the cryptocurrency peaked at $12,357 before correcting. 24% happened in two weeks. The same pattern played out in 2018, but in 2017, for example, Bitcoin’s uptrend continued throughout August with only minor hiccups.
Meanwhile, a survey by Santiment shows a high probability that BTC will rally above $40,000 within the next 2 weeks. And their data shows it.
Besides, the number of unique Bitcoin tokens in circulation has increased to levels not seen since May. This is a huge development considering the stagnation of BTC leading up to this week.
Aside from XRP, other altcoins underperformed BTC significantly, which pushed its dominance to its highest level since early May.
Yesterday the good news of a new On-Demand Liquidity (ODL) payment corridor along with upward pressure seems to come from crypto futures trading platforms, as speculators bet on the futures. of the token, XRP is up over 40% in the past week.
According to technical analyst Ali Martinez, XRP has rallied over the past few days as its open interest has increased by around $100 million.
“Ripple speculators are back. XRP is up over 40% in the past week, but most of the bullish pressure seems to come from futures trading platforms. Indeed, open interest has increased by ~$100 million since then, while 18 whales holding over 1 million XRP have left the network,” he tweeted.
In the past week, the cryptocurrency price has increased by more than 40%. At press time, XRP is changing hands at $0.7, having recorded a 10% gain on the day.