Bitcoin experienced a familiar pattern as its latest push to $70,000 was swiftly rejected, resulting in a sharp $4,000 price drop. BTC $66,441 traded around $66,500 into the July 30 Asia trading session, circling the daily open.
BTC Price Fails to Hold Key Support
The previous day saw significant volatility, with Bitcoin initially reaching $70,000 but failing to sustain it. This resulted in a nearly 6% drop within hours. The move coincided with $2 billion of BTC leaving a wallet linked to the United States government, contrasting with weekend pledges by presidential candidates to build a Bitcoin strategic reserve.
BTC/USD 1-hour chart. Source: TradingView
William Clemente, co-founder of Reflexivity, suggested the timing was “not a coincidence” and predicted a short-term dip before a likely upward movement. Keith Alan, co-founder of Material Indicators, expressed hope that bulls could recover to maintain a rising trendline on daily timeframes.
Bulls Need to Flip $69,000 for Sustainable Growth
Alan emphasized that higher levels, specifically $72,000 and above, depended on bulls flipping the old 2021 all-time high of $69,000 to firm support. He argued that a sustainable move to a new all-time high would only occur once this level was validated and flipped.
Source: Keith Alan
Short-Term Targets and Market Sentiment
Popular trader Roman focused on near-term BTC price targets, extending down to $60,000. He predicted that sentiment would become ultra-bearish at these levels, potentially triggering a short squeeze and a return to the upper part of Bitcoin’s longer-term trading range.
BTC/USDT chart. Source: Mark Cullen
Fellow trader Mark Cullen analyzed whether Bitcoin would hold at the current trendline and golden zone retrace to create a higher low (HL) or bounce for a lower high (LH) and roll over to the range low.
Increasing Exchange Withdrawals
The onchain analytics platform CryptoQuant has noted increasing withdrawals from exchanges. Contributing analyst CryptoOnchain highlighted that the mean amount of BTC per exchange withdrawal transaction was rising, despite Bitcoin entering a fluctuation area since February. This increase in Bitcoin outflow is seen as a positive sign, indicating the possibility of a price increase and a breakout from the fluctuation area in the future.
