The rumor that Amazon would accept cryptocurrency payments sparked a wave of bullish enthusiasm throughout the crypto market earlier within the week however now this sentiment has begun to wane as Bitcoin (BTC) bulls face stiff resistance on the $40,000 stage. 

Information from Cointelegraph Markets Pro and TradingView reveals that bears have managed to fend off a number of makes an attempt to flip the $40,000 stage to help and protection of this zone continued on July 29 as Bitcoin’s stagnant worth motion and added to issues that the worth may fall again to final week’s $35,000 to $30,000 vary.

BTC/USDT 1-day chart. Supply: TradingView

Right here’s what analysts and buyers are saying in regards to the current developments in Bitcoin’s worth.

The 21-week EMA marks the road between a bull and bear market

Bitcoin’s fast ascent from $31,000 to $40,925 lifted the worth close to its 21-week exponential shifting common, a stage that’s extensively thought-about as a bull market indicator in accordance with pseudonymous crypto Twitter analyst Rekt Capital.

As seen within the tweet above, the 21-week EMA is at the moment close to the $40,000 worth stage, successfully turning into the ‘line within the sand’ that separates bulls and bears.

One of many responses to the above tweet presents a phrase of warning for overly bullish merchants as a result of comparable strikes prior to now have been adopted by decrease lows and an extension of bear market situations.

BTC/USD 6-day chart. Supply: Twitter

As proven by the yellow circles within the chart above, earlier cases of the worth breaking above the 21-week EMA have resulted in a reversal that results in a retest of decrease lows within the following weeks and months.

Bitcoin whales stay grasping whereas others are fearful

One group of market individuals who’ve proven little proof of indecision are Bitcoin whales, who’ve embraced Warren Buffett’s mantra to “be fearful when others are grasping, and grasping when others are fearful,” by shopping for up low-priced BTC as weaker arms faucet out.

In line with information from Santiment, an on-chain and behavioral evaluation platform, whale wallets have accrued 130,000 BTC prior to now 4 weeks as the worth of Bitcoin traded beneath $35,000.

With such heavy accumulation being seen within the decrease $30,000 to $35,000 vary, some analysts have recommended that whales might try to orchestrate one other pullback in worth in order that they’ll proceed to build up.

Associated: Bitcoin bulls control Friday’s $1.7B monthly options expiry

Lengthy-term cycles supply hope

When near-term confusion prevails, generally it is best to take a step again to see the larger image of the place the market is and what potentialities the long run holds.

In line with Inmortal UP ONLY, a pseudonymous Twitter consumer, Bitcoin’s four-year cycle is at the moment about 65% by way of its bull-market section and the dealer predicts a prime at $150,000, which might be adopted by a correction to $32,000.

Bitcoin worth in four-year cycles. Supply: Twitter

For merchants and holders that choose to function on an extended time scale, there stays lots to be optimistic about sooner or later for and skilled market individuals know the worth strikes seen over the previous few months are half and parcel of the traditional development for Bitcoin.

Additional affirmation of the long-term perspective was supplied by Ecoinometrics, who in contrast Bitcoin’s present post-halving worth motion to performances within the earlier two halvings.

As proven above, the present worth of BTC is effectively beneath the common progress of earlier cycles, indicating that the BTC has some “catching as much as do” if it’ll obtain an identical trajectory and attain a brand new all-time excessive above $100,000.

The views and opinions expressed listed below are solely these of the writer and don’t essentially mirror the views of Each funding and buying and selling transfer includes threat, it’s best to conduct your individual analysis when making a choice.