bitcoin price has recently shown signs of recovery, returning to the $58,000 level after reaching a minimum of five months of $53,500. However, technical analysis suggests that the digital asset might struggle to break above crucial indicators, which could push it back to lower price levels.
In a recent x.com/i_am_jackis/status/1811802657184448769″ target=”_blank” rel=”nofollow”>mail On social media platform x (formerly twitter), market expert Jackis highlights the D1 bearish trend indicator on the 12-hour chart, indicating the need for bitcoin to reclaim the $64,000 zone to reverse the prevailing daily downtrend.
Despite this cautious outlook, there are encouraging signs, including significant inflows into bitcoin exchange-traded funds (ETFs) and long-term holders accumulating more btc.
btc struggles to break the downtrend
Despite the recent recovery, bitcoin technical analysis suggests that the bearish trend remains. Jackis emphasizes that even if the bitcoin price climbs back up to $60,300, the D1 trend indicator remains bearish unless btc manages to reclaim the $64,000 zone, which has already proven to be a major resistance for the bulls as btc price failed to break above it in its previous attempt on July 1.
According to Jackis’ analysis, the target range for the next daily leg is projected to be between $51,000 and $49,000, with a pivotal level at $63,800 that bulls must target to reverse the daily trend.
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However, there is potential to reverse this situation as “dip buyers” have returned, resulting in significant inflows into the US bitcoin market. ETF Marketsupporting bitcoin price this week to avoid a deeper pullback with consecutive days of inflows to manage selling pressure on German government holdings.
ETF input data and bitcoin price performance
JPMorgan bitcoin-etfs-see-best-weekly-inflows-since-may-after-price-swoon” target=”_blank” rel=”nofollow”>data shows that bitcoin spot ETFs saw inflows of $882 million during the week ending July 11, averaging $175 million per day, marking the highest inflows since May 23.
BlackRock’s IBIT ETF and Fidelity’s FBTC led the surge, attracting $403 million and $361 million, respectively. However, Grayscale’s ETF continued its outflow trend, losing nearly $87 million after three weeks of outflows in the ETF market totaling more than $1.1 billion.
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Supporting the bullish outlook, cryptocurrency analyst CryptoSoulz conducted an in-depth analysis of bitcoin's price performance in July, x.com/SoulzBTC/status/1811716451243303135″ target=”_blank” rel=”nofollow”>finding that long-term holders have been accumulating btc, having purchased over 85,000 btc in the past 30 days.
According to the analyst, this accumulation by long-term holders is a bullish catalyst for the price, indicating confidence in bitcoin's potential.
CryptoSoulz, like Jackis, suggests that bitcoin is currently finding support in the higher time frame (HTF), anticipating a bounce from this level, particularly considering the recent bearish news.
However, the analyst further explained that if the bitcoin price fails to sustain above the $54,000 zone in the coming days, the next level of support is expected to be at $49,500.
At the time of writing, bitcoin price stands at $58,300, up just 0.7% in the 24-hour timeframe as btc looks to consolidate above the aforementioned crucial levels.
Featured image of DALL-E, chart from TradingView.com
