BTC price started the week on a bullish note by surging above $9,200 during early hours on Monday. At the time of writing, Bitcoin is changing hands at $9,199.
In yesterday’s Cryptanalysis, we explained that there is a risk of a sharp decline in bitcoin if it fails to close above the $9,200 resistance level.
BTC remained in a bearish zone as it fell significantly below the $9,100 mark, with prices even plunging below $9k to reach a new weekly low at $8,914.
Nonetheless, there was no daily close below that level, and the largest cryptocurrency recovered swiftly. BTC is currently facing a major resistance near $9,100, with a key bearish trend line forming with resistance near the $9,120 zone.
Looking ahead, a successful break above $9,120 is a must for a fresh increase, after which the bulls will possibly aim a sustained uptrend to $9,500 in the coming sessions.
BTC Continues to see Boring Price Action
If you’ve followed the cryptocurrency market over the past few weeks, you probably know that Bitcoin has essentially flatlined.
With BTC stagnating, investors have been endeavoring to build long and short positions to profit when Bitcoin finally moves.
However, a twitter trader dubbed “InmortalCrypto” now says that this may be ill-advised, claiming that it may be best for traders to sit this price action out. He tweeted:
“Nobody knows how this will end, but remember, sometimes no position is the best position.”
According to the CEO of Bitcoin mining startup Blockware Mining, Matt D’Souza, accumulation is the strategy BTC investors should be adopting.
Indeed, data from blockchain analytics firm Glassnode indicates that investors are doing so. The firm’s CTO shared the chart below in late June, which reveals that Bitcoin addresses considered “HODLer” addresses have accumulated huge amounts of BTC since the start of 2020.
What’s Next for Bitcoin?
During yesterday’s plunge below $9,000, approximately $5.5 million worth of Bitcoin longs on BitMEX were liquidated, according to data from crypto derivatives tracker Skew.com.
This may look like a massive amount of coins, but it’s nowhere near the dozens of millions worth of liquidations usually witnessed during such downtrends.
The low level of liquidations can be attributed to BTC’s barely moving from a macro perspective, falling by a mere $100. According to crypto analyst and Blockroots founder Josh Rager, a move below $8,900 would spur a move to even lower levels.
Luckily for the bulls, the flagship crypto has yet to lose that level, but considering that BTC’s price move is still ongoing, the plunge could happen soon.