Is Bitcoin price bottomed at $29,500 and this rally sustainable enough to move towards the $33,000 region?

By Selena On Jul 23, 2021

Bulls managed to find momentum and holding the $32,000 support level will be very important to confirm the uptrend of Bitcoin price in the near term.

Bitcoin price holds $32,000 support level, up nearly $33,000

Traders show renewed hope after BTC is held in the $32,000 range for the second day in a row. However, more time is needed to confirm that Bitcoin may be in the midst of a trend reversal before fully initiating a bull run.

BTC/USD 4-hour chart | Source: TradingView

Many previous support levels for Bitcoin, including $35,000 and $37,000, could soon act as resistance. At the time of writing, Bitcoin price is in the process of attempting a sustained break above $32,800, where the price has been stuck for most of the day.

Meanwhile, analyst IzzyEibani, who highlighted the recent spike in exchange inflows as a possible sign that the bottom is in, also pointed to another sign of bullishness.

“Exchange inflows spiked 3 times since 2017, and each spike corresponded with a major bottom in price. And now, the 4th spike has just been completed…,” he tweeted.

Bitcoin price vs. exchange inflows | Source: IzzyEibani/Twitter

A closer look at the chart shows that there have been three instances in the past on Aug. 1, 2017, Nov. 30, 2018, and March 12, 2020, where inflows to exchanges spiked like what was seen on July 16. Each time the market bottomed within a short time period following the inflows.

If the market moves similarly to the historical pattern, there is a high probability that the recent drop to $29,500 could be the bottom. And BTC bottomed out then spiked up to the current price. If this is true, it seems that the recent The B Word Conference event is just another factor supporting the bullish and sustaining momentum.

Elsewhere, the market also had a lot of bad news related to regulation. But this does not affect BTC.

U.K. banking giant NatWest Group has blocked all of its customers from moving payments to Binance. The bank has informed its customers that the decision was made in response to regulatory uncertainly surrounding the company in the U.K:

“With an increase in scams relating to cryptocurrency and regulatory uncertainly around Binance in the U.K., we want to make sure that your money is safe. That’s why we’ll be declining all credit and debit card payments to them until further notice.”

NatWest Group has now joined Santander UK and Barclays, as AZCoin News reported, two other major British banking institutions, in halting payments to Binance.

Additionally, the Texas State Securities Board filed a cease and desist order against crypto lender BlockFi for not offering security licensed at the state or federal level. If the judge accepts that the platform’s accounts earning interest in crypto represent unlicensed securities, then BlockFi may be subject to a cease and desist order.

BlockFi has faced cease and desist orders from the New Jersey Bureau of Securities that prevent it from reaching customers with new interest accounts. The Alabama Securities Commission also issued a 28-day order to the platform to show why it is not subject to the same regulatory penalties for allegedly selling unregistered securities in Alabama.

Meanwhile, Bitcoin Dominance, which measures Bitcoin market capitalization relative to total market capitalization, stabilizes around 45.7%. This ratio has risen from a June low of around 39%, which could signal further upside for Bitcoin against other cryptocurrencies.

Bitcoin may be seen as a safe haven asset as altcoins experienced stronger sell-offs during bear markets similar to 2018.

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