Bitcoin price seemed to be on a path to recovery, moving back above $40,000, play-to-earn trend hasn’t cooled down yet

By Selena On Jul 28, 2021

After Bitcoin price spiked above $40,000 a day earlier, with a slight drop towards the $37,000 region, BTC has excelled above $40,000 again today, sparking a rally and delivering a new sense of optimism for the market.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price consolidates the $40,000 region after yesterday’s rally

While the pullback might suggest that the rally was simply a brief squeeze, others point to the rising Grayscale Bitcoin Trust (GBTC) premium, which is now at the highest levels in months at -5.88%, suggestive that institutions are once again betting on more BTC price upside. The GBTC premium index rebounded significantly to -3.407178, which was the closest to the zero axis since May 22.

GBTC rose by 24.27% on the 26th during Eastern US trading hours | Source: CryptoQuant

As AZCoin News reported, rumors that Amazon will start accepting crypto payments in 2021 helped spark a market-wide rally. Although the company later officially denied causing the price to drop to $37,000. But, according to market analyst Rekt Capital, Bitcoin’s price chart shows a fractal pattern that is similar to the price-performance in October 2020, just before BTC price began its run to a new all-time high.

“When was the last time #BTC broke beyond the 50-day EMA resistance? Back in October 2020. This is when $BTC formed a very similar fractal of Bitcoin’s current price action,” he tweeted.

Source: Rekt Capital/Twitter

However, it seems that only a conclusive break above $50,000 in BTC would attract fresh flows and signal a change in the broader direction for the market. Because the investment from the big players brings huge capital for BTC.

The short-squeeze rally triggered the most active trading session this quarter in crypto markets, according to data from Skew. The increase in volumes has been driven by large buyers, typically institutions that have waited for a more directional trend on bitcoin since the end of May.

Bitcoin spot – aggregated daily volumes | Source: Skew

At the moment, BTC’s breakout above $40,000 has once again created excitement in the altcoin market. ETH price rose 7% to $2,335. Meanwhile, the top 15 CoinMarketCap with ChainLink (LINK) is exhibiting a double-digit, 11% gain over the past 24 hours, recording a high of $19.94.

Dogecoin (DOGE) and Solana (SOL), the two hardest-hit tokens in the top 20 yesterday with double-digit declines, have also regained 5% intraday gains today. The “Play-to-earn” trend remains as Axie Infinity (AXS) and MyNeighborAlice (ALICE) mark the day’s best performers, recording 30% and 52% gains respectively.

ALICE/USD 4-hour chart | Source: TradingView

The overall cryptocurrency market cap now stands at $1.556 trillion and Bitcoin Dominance is 48.4%.

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