Mohammed Oluwatimileyin Taoheed
Bitcoin (BTC) stroked a three-day low into the July 10 weekly close as $21,000 gave way as brief-term support.
Data revealed that BTC/USD giving up some of its gains from earlier in the week while still looking to cover its best weekly gains since March.
The pair circled $20,850 at the time of writing, around $1,600 below the week’s height at the 200-week moving average.
With no resumption of the breakout, Bitcoin gave some commentators cause for cautious optimism ahead of the new week beginning.
“The markets are showing higher timeframe bullish divergences and the sentiment is the same as on a funeral,” analyst Michaël van de Poppe noted.
“A recipe for a reversal is there, and it can accelerate quite fast. Invest when nobody is interested. Sell when everyone is interested.”
Meanwhile, Crypto Tony, an avid trader, concurred to the option of a new sideways phase entering before a deeper drop, something which he claimed “would drive everyone crazy.”
Macro situations are doubtful with the crisis in Sri Lanka adding to a sense of anxiety caused by the common global theme of energy, food and financial crisis.
Attention are now given to the U.S. dollar Index (DXY), which had ended the week back on support after spiking to fresh highs not seen in twenty years.
Those soliciting a golden buying chance on BTC meanwhile got a fresh key signal from the Reserve Risk indicator.
TrackNews Nigeria learnt that Reserve Risk, which shows long-term holder sentiment, hit its lowest-ever levels at July’s prices.
“Either this indicator is broken or we are in the high timeframe bottoming zone,” he said in part of Twitter comments alongside data from on-chain analytics firm Glassnode.
“I lean towards the latter.”
Reserve Risk, as reported, has been rediscovering its green “buy” zone since March, this corresponding to optimal chances to invest with “outsized returns” as a result.
