Bitcoin price rapidly recovers above $33,000 support but may still drop to the $24,000 in short-term

By Selena On Jul 10, 2021

Bitcoin price is back in action after the whale-induced drop failed to keep the market down for more than 24 hours. Bitcoin was holding above $33,000 support at press time and is roughly flat for the week. Buyers will remain active above $30,000, although upside momentum is starting to slow heading into the weekend.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin bulls pushed the price back above $33,000

Bitcoin rises amid a slew of bullish announcements this week, signaling further crypto adoption in the mainstream. Twitter CEO Jack Dorsey confirmed that Square, a digital payments service company, will move forward with making a hardware wallet for BTC.

We’re doing it #Bitcoin https://t.co/IwbKuBoXGv

— jack (@jack) July 8, 2021

Following Dorsey’s remarks, Bitcoin rose to $33,000, surged roughly 3% the following hour. It can be said that this good news has extinguished the small FUD that came from Tiktok banning influencers from promoting cryptocurrency on their platform.

As AZCoin News reported, the market was marked by a trip lower and tested the $32,000 support. The cause is believed to have stemmed from the sudden short sale of an anonymous whale on Bitfinex. Recently, it was noticed that whales continued to have borrowed more than 2,000 BTC on Bitfinex. As of now, there are 10,575 BTC on Bitfinex that were lent.

Source: WuBlockchain/Twitter

The recent buildup in shorts is still below peak levels in June, which suggests pessimism could continue as bitcoin remains in an intermediate-term downtrend that began in April. Eventually, extreme pessimism could lead to a short squeeze as buyers respond to oversold conditions, fueling a price rally.

However, with the $33,000 support now working again, traders are once again hoping that the current short-term theories can still come into play.

Industry researchers flagged new bullish trends on on-chain indices over the weekend. Which, Bitcoin exchange balances have started to show signs of sustained outflows since the sell-off on 22-June. From the 2021 lows, around 140,000 BTC was to exchanges. Over the last three weeks, approximately 40,000 BTC have been withdrawn, 28% of what came in.

Source: Glassnode

Sentiment among traders received a slight boost after Bitcoin price reversed course and rallied back to $34,000 but the price still remains trapped between key resistance and support levels and the lack of buy volume is still a valid concern.

Trader Tempting Beef also pointed out that the total crypto market cap and altcoin market cap remain in a precarious position.

“Crypto total market cap and altcoin market cap both failing to flip their key pivots and forming lower highs. Unless we pull it together, I expect us to just play in this range maybe with some standouts like AXS. Could be a boring summer”, he tweeted.

Source: Tempting Beef/Twitter

Meanwhile, popular cryptocurrency trader Keith Wareing warns traders about a critical bearish scenario brewing in the market. He discovered Bitcoin inside an inverse cup-and-handle pattern earlier this month, a bearish structure that forms during a price wave downward, followed by a stabilizing period. Seeing that the handle of the pattern appears nearing exhaustion, Wareing says that Bitcoin price will fluctuate inside the structure for the next three to four weeks. After that, the cryptocurrency will drop lower, to the point where it can touch $24,000.

Bitcoin cup-and-handle pattern visualized | Source: Keith Wareing/Twitter

With the BTC rally today, the entire cryptocurrency market is also up slightly. The top 10 most prominent is DOGE with a 10% increase on the day. Maybe it’s because yesterday’s Elon Musk effect hasn’t cooled down yet.

In addition, the top 30 have EOS which is quite worth mentioning. It surged 20.3%, after its creator, Block.one’s unit Bullish, announced its plan to go public on the New York Stock Exchange through a merger with Far Peak Acquisition Corp, a special purpose acquisition company (SPAC). Bullish is planning to launch a cryptocurrency exchange, while the deal will value the combined company at $9 billion.

Most digital assets ended up higher today. The total cryptocurrency market capitalization hovers at $1.407 trillion, up 5% over the past 24 hours.

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