Bitcoin Price Analysis
Bitcoin price rose 7% over the weekend, smashing the $68,400 resistance on Monday July 22 after Joe Biden announced the decision to bow out of the US 2024 Presidential Elections. Bull traders have bet another $1.28B on BTC in anticipation of further upside in the week ahead.
Bitcoin Price Gains 7% Over the Weekend
Following a correction scare on Friday July 19, bulls traders regained foothold of the crypto markets over the weekend. While Ethereum price fell behind the markets, Bitcoin price rally entered second-gear, smashing into new monthly peaks.
The Bitcoin price uptrend was largely driven by a major shift in the US Presidential Elections race. On Sunday, July 21, US President Joe Biden announced the decision to quit the re-election race.
The chart above shows that BTC price gained 7.78% over the weekend rising from the $63,294 on Friday, to hit $68,477 on Monday July 22. Notably this is the highest BTC has traded in over 30-days dating back to June 10, 2024.
Bitcoin Traders Mount $1.28 Positions After Biden Announcement
Joe Biden’s decision to quit, has now put Crypto-friendly Donald Trump firmly ahead in the Presidential Elections race, sparking a wave of enthusiastic buying frenzy on Sunday evening.
Bitcoin Price Forecast
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See all Bitcoin forecastsMarket data shows that traders are betting heavily on the prospects of Bitcoin price rising towards the $70,000 territory in the week ahead.
CoinGlass’ Liquidation Map data presents real-time value of active LONG/SHORT contracts currently listed for BTC derivatives.
The chart above shows that around the 20% price boundaries, Bitcoin bulls have mounted LONG positions worth $1.28 billion dollars as of July 22. Meanwhile the total active SHORT contracts stands just below the $1.20 billion mark.
Essentially, this means that following Joe Biden’s decision to drop out of the election campaigns, Bitcoin LONG contracts have now exceeded SHORT contracts by over $80 million.
It appears that Biden’s announcement has spurred investor confidence in BTC short-term price prospects. If bulls hold this momentum until markets open on Monday, more funds could flow towards Bitcoin purchases.
More so, considering the bears have mounted $1.20 billion SHORT positions around the current prices, it means that BTC price is likely to enter an accelerated uptrend if those SHORT contracts get liquidated within a short-period.
If this short-squeeze scenario plays out, BTC price could surge towards $70,000 in the week ahead, especially if Bitcoin ETF investors opt to turn up the buying pressure after Biden’s latest announcement.
Bitcoin Price Forecast: $70,000 Resistance at Risk
Bitcoin’s price broke into yet another 30-day high of $68,477.85 on July 22, and despite a minor pullback, it continues to trade above key support levels. Currently priced at $67,353.04, Bitcoin is showing signs of potential upward movement, with bulls eyeing a retest of the $70,000 resistance level.
The technical indicators on the chart provide a mixed outlook. The Bollinger Bands (BB) are starting to widen, suggesting increased volatility. The %b indicator, which measures the position of the price relative to the upper and lower Bollinger Bands, is at 0.87. This indicates that Bitcoin is nearing the upper band, a zone often associated with overbought conditions. However, a sustained move above this level could signal strong bullish momentum.
Support levels to watch include the 20-day Simple Moving Average (SMA) at $61,140.64 and the lower Bollinger Band at $52,831.85. These levels could act as safety nets in case of further corrections.
On the upside, the immediate resistance is at the recent peak of $68,477.85, followed by the psychological $70,000 level. A break above $70,000 could pave the way for a new all-time high, potentially drawing in more buyers.
In summary, while Bitcoin’s price shows promising signs of testing the $70,000 resistance, traders should remain cautious of potential volatility. Monitoring the key support and resistance levels will be crucial in the coming days to gauge the market’s direction.