Bitcoin price is down, but data signals that $30K and above is the path of least resistance
On July 24, Bitcoin experienced a flash crash, plummeting to $29,000 in a movement now attributed to significant Bitcoin holders potentially liquidating their positions.
Amid the crash and market uncertainty, Bitcoin’s (BTC) three major trading metrics continue to project a bullish outlook, signifying that professional traders have not reduced their leverage longs through the use of margin and derivatives.
Analytics firm Glassnode reported a surge in whales’ inflows to exchanges, reaching their highest level in over three years at 41% of the total BTC inflows. This forceful sell-off from whales alarmed investors, especially in the absence of any significant negative events impacting Bitcoin in the past month.
Notably, a major concern stems from the ongoing court cases by the United States Securities and Exchange Commission against leading exchanges Binance and Coinbase. Still, there hasn’t been any major advancement in those cases, which will likely take years to settle.
Despite historical volatility, Bitcoin’s crash became more pronounced following 33 consecutive days of trading within a tight 5.7% daily range. The movement is even more noteworthy given the S&P 500 gaining 0.4%, crude oil rising by 2.4% and the MSCI China stock market index surging by 2.2%.
However, it is essential to consider that the world’s largest global reserve asset, gold, experienced a dip of 0.5% on July 24. Furthermore, the U.S. Dollar Index (DXY) reversed its two-month-long trend of devaluation against competing fiat currencies, climbing from 99.7 to 101.4 between July 18 and July 24.
The DXY measures the strength of the U.S. dollar against a basket of foreign currencies, including the British pound, the euro, the Japanese yen, the Swiss franc
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