Bitcoin Surges Amid Whale Activity and Limited Supply Prospects

Monday Market Overview:

Bitcoin has surged close to the $70,000 mark in Monday’s trading session, reaching its highest level in seven weeks despite being 6% below its all-time high. This represents the highest trading level for Bitcoin since June 13, when it previously reached $70,000 but faced selling pressure and subsequently retreated. The current sentiment in the Bitcoin market is notably positive. The Bitcoin Fear and Greed Index, a measure of market sentiment, is currently at 74, indicating a state of “Greed”​. This bullish sentiment is supported by various technical indicators and a high level of market confidence, reflected in strong buying volumes and high levels of social media engagement around Bitcoin​.

Technical Analysis:

On the daily chart, Bitcoin has broken through its monthly resistance at 68477.15, extending its bullish rally to the next resistance at 69868.06. This level is expected to test the buyers’ momentum, especially as the RSI approaches the overbought zone. Nevertheless, as long as the price remains above the key level of 68477.15, the outlook remains bullish. Overcoming the 69868.06 resistance could set the stage for the next targets between 71637.39 and 73590.80.

Alternative Scenario:

If sellers regain control, the supports at 68477.15, 66523.74, and ultimately the key low at 63363.50 will come into focus. Breaking the latter support would signal a trend reversal to bearish.

Market Overview and Key Levels

Resistance Levels:

• Resistance 3: 73590.80
• Resistance 2: 71637.39
• Resistance 1: 69868.06

Current Price (at the time of analysis): 69733.40

Support Levels:

• Support 1: 68477.15
• Support 2: 66523.74
• Support 3: 63363.50

Impactful Events:

Recent positive sentiment around Bitcoin has been bolstered by endorsements from two US presidential candidates and a prominent Republican senator during the Bitcoin 2024 conference, held from July 25 to 27. Former President Donald Trump has proposed holding Bitcoin and banning its sale by the government, which could limit the supply and support price growth.

Technical Indicators:

RSI (Relative Strength Index): Bullish, approaching overbought levels.

MACD (Moving Average Convergence Divergence): Bullish, supporting the upward momentum.

Moving Averages: Mixed, reflecting a cautious yet bullish outlook.

Conclusion:

Bitcoin’s current upward trajectory is driven by a combination of whale activity and a potential limited supply outlook, reinforced by recent political endorsements. As long as the price stays above 68477.15, the bullish trend remains intact, with key resistances at 69868.06, 71637.39, and 73590.80 in sight. However, should sellers regain control, the critical support at 63363.50 would be pivotal in determining whether the trend shifts to bearish. The upcoming market events and political developments will be crucial in shaping Bitcoin’s next moves.