Bitcoin price can’t cross $40,000, XRP surges 40% over past week
Bitcoin price has dropped below the $40,000 mark. The BTC/USD pair started off with a fresh spike, bringing it to heavy range resistance but ultimately lacking the impetus to change its existing pattern. At the time of writing, BTC is focused on $39,819, having dropped to as low as $39,300.
BTC/USD 4-hour chart | Source: TradingView
$40,000 yet to stick as new support for Bitcoin price
The recent surge above $40,000 injected a healthy dose of bullish optimism into the crypto market and further proof of this comes from the Crypto Fear and Greed index which has decreased from “extreme” to “neutral”.
Crypto Fear & Greed Index as of July 29 | Source: Alternative.me
According to crypto analytics Michael van de Poppe, BTC retracement is not only welcome but necessary to consolidate new higher levels and the prospect of a further breakout.
“What you want to see after such a move is the price is going to make a higher low, and preferably you want to see it happen in the range around $34,500,” he explained. Either side of that level for higher low constructions were $32,500 and $36,000, he added.
Furthermore, NorthmanTrader founder Sven Henrich recently took to Twitter to warn that intermittent summer rallies tend to be short-lived. The chartist is not willing to go as far as making a concrete prediction, but he claims that a further bout of weakness could ensue based on the cryptocurrency’s historic performance.
“Not a prediction, just an observation, but based on #Bitcoin’s seasonal history intermittent summer rallies have tended to be followed by some weakness. Some minor, some rather pronounced,” he tweeted.
Source: Sven Henrich/Twitter
In recent years, late summer rallies did fade. On August 17, 2020, BTC rose to $12,469, but it retraced almost 20% by early September. On August 7, 2019, the cryptocurrency peaked at $12,357 before a 24% correction took place over two weeks. The same pattern also played out in 2018, but in 2017, for instance, Bitcoin’s uptrend continued throughout August with only minor hiccups.
Meanwhile, a survey by Santiment shows that there is a high probability that BTC will rise above $40,000 within the next 2 weeks. And their data shows it.
Besides, Bitcoin’s amount of unique tokens being circulated has jumped to levels not seen since May. This is a big development considering BTC’s stagnancy leading up to this week.
Apart from XRP, other altcoins significantly underperformed BTC, which in turn pushed its dominance to the highest level since early May.
As AZCoin News reported, good news yesterday about a new On-Demand Liquidity (ODL) payment corridor along with upward pressure that appears to be coming from cryptocurrency futures trading platforms, as speculators have been betting on the token’s future, XRP has surged over 40% in the past week.
According to technical analyst Ali Martinez, XRP has been moving up over the last few days as its open interest rose by about $100 million.
“Ripple speculators are back. XRP has surged by more than 40% over the past week, but most of the upward pressure seems to be coming from futures trading platforms. Indeed, open interest rose by ~$100M since then, while 18 whales holding over 1M XRP have left the network,” he tweeted.
XRP rose along with open interest, with most of the trading volume being on Binance, Bybit, and FTX | Source: Bybt
Over the past week, the cryptocurrency’s price moved up over 40%. At press time, XRP is changing hands at $0.7, recorded a 10% increase on the day.
- Bitcoin Price Seemed To Be On A Path To Recovery, Moving Back Above $40,000, Play-To-Earn Trend Hasn’t Cooled Down Yet
- What Is The Play-To-Earn Trend? Why Is This Trend Exploding Now?
- Over 130,000 BTC Have Been Shifted In The Last Few Hours Between Bitcoin Whales