{"id":308796,"date":"2021-07-27T01:12:04","date_gmt":"2021-07-26T22:12:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-price-drop-to-37k-has-analysts-wary-of-calling-a-trend-change\/"},"modified":"2021-07-27T01:12:04","modified_gmt":"2021-07-26T22:12:04","slug":"bitcoin-price-drop-to-37k-has-analysts-wary-of-calling-a-trend-change","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-drop-to-37k-has-analysts-wary-of-calling-a-trend-change\/","title":{"rendered":"# Bitcoin price drop to $37K has analysts wary of calling a \u2018trend change\u2019"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f9ce3e377b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f9ce3e377b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-drop-to-37k-has-analysts-wary-of-calling-a-trend-change\/#Factors_that_could_reignite_the_bull_market\" >Factors that could reignite the bull market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-drop-to-37k-has-analysts-wary-of-calling-a-trend-change\/#On-chain_data_is_not_so_bullish\" >On-chain data is not so bullish<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-drop-to-37k-has-analysts-wary-of-calling-a-trend-change\/#Altcoins_follow_Bitcoins_lead\" >Altcoins follow Bitcoin&#8217;s lead<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin price drop to $37K has analysts wary of calling a \u2018trend change\u2019  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bull market optimism returned to the cryptocurrency market on July 26 after Bitcoin (BTC) price rallied above the $40,000 level for the first time in over six weeks. <\/p>\n<p>Today&#8217;s rally to $40,581 was a continuation of the July 25 breakout which saw BTC price rocket to $48,110 at Binance af a short squeeze resulted in nearly $500 million in shorts being liquidated in just two minutes.\u00a0<\/p>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/\">TradingView<\/a> shows that BTC spiked to an intraday high at $40,581 on Monday before pulling back to $37,500 as bulls look to flip this resistance zone back to support in preparation for a further move higher. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/f4328f78-1574-49d0-9884-d2bb43b88fc3.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 4-hour chart. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSDT\/\"><em>TradingView<\/em><\/a><\/figcaption><\/figure>\n<p>While the move higher has the mark of a trend change and has prompted some analysts to proclaim the bull market is back on track, on-chain data and the perpetual funding rates do not fully concur with this point of view. Especially when one considers that the current breakout may have only been the result of a massive short squeeze. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Factors_that_could_reignite_the_bull_market\"><\/span>Factors that could reignite the bull market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to \u00c9lie Le Rest, partner at digital asset management firm ExoAlpha, the recently denied rumor that Amazon would accept cryptocurrency payments have the potential to have a similar effect as the 2020 revelation from PayPal that it would integrate cryptocurrencies. Le Rest said that if the Amazon <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> turns out to be true, this \u201ccould be the catalyst to ignite a bull run in H2 of 2021.\u201d<\/p>\n<p>As Bitcoin price pushed above the $35,000 level on July 25, \u201cmore than a billion dollars of shorts got liquidated in the past 24 hours, with the bulk of the liquidation occurring in less than 1 hour\u201d according to Le Rest, who also said, \u201cthe current market move could be sustained during the week by volumes coming from players having waited for a more directional trend on Bitcoin since the end of May.\u201d <\/p>\n<p>Le Rest said:<\/p>\n<blockquote><p>\u201cTo validate this directional trend, Bitcoin has to break out of the $30,000-$40,000 range it has been stuck into for 2 months. Maintaining Bitcoin over the $40,000 level would signal that the \u201cbear market\u201d is over and the bull-run may resume.\u201d <\/p><\/blockquote>\n<p>If Bitcoin is able to maintain its current momentum, Le Rest said \u201cas many expect, Bitcoin could get back on track with the Stock to Flow model and reach the $100,000 mark by year-end.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"On-chain_data_is_not_so_bullish\"><\/span>On-chain data is not so bullish<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Caution is warranted against being overly bullish and data from Glassnode suggests that several bearish threats remain valid.\u00a0<\/p>\n<p>When analyzing the directional bias of the futures markets, Glassnode found that \u201cperpetual funding rates have continued to trade negative,\u201d which \u201cindicates the net bias remains short Bitcoin.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/fd482100-629e-4d7f-98fc-4bdb8948dbb3.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin futures perpetual funding rate for all exchanges. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-30-2021\/\"><em>Glassnode<\/em><\/a><\/figcaption><\/figure>\n<p>Glassnode said:<\/p>\n<blockquote><p>\u201cThis metric in particular helps us identify that Monday&#8217;s price rally is likely associated with an overall short squeeze, with funding rates continuing to trade at even more negative levels despite price rallying +30%.\u201d<\/p><\/blockquote>\n<p>Glassnode also pointed to Bitcoin on-chain activity and highlighted that \u201cin direct contrast to the volatility in spot and derivatives markets, the transaction volume and on-chain activity remains extremely quiet.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/de4428df-23fc-4eb7-a67a-43599348c7dd.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin entity-adjusted total transfer volume. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/insights.glassnode.com\/the-week-on-chain-week-30-2021\/\"><em>Glassnode<\/em><\/a><\/figcaption><\/figure>\n<p>Overall, how on-chain transfer volume responds to the recent price action in Bitcoin will provide better insight into where the market is headed, but as noted by Glassnode, \u201cit remains to be seen whether on-chain volumes start to pick up in response to recent volatile price-action.\u201d<\/p>\n<p><strong><em>Related<\/em><\/strong><em>: <\/em><em>DeFi tokens book double-digit gains after Bitcoin rallies above $39,000<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Altcoins_follow_Bitcoins_lead\"><\/span>Altcoins follow Bitcoin&#8217;s lead<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/92c20a38-13fe-4815-8171-60ff2b2ec00f.png\"><figcaption style=\"text-align: center;\"><em>Daily cryptocurrency market performance. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coin360.com\/\"><em>Coin360<\/em><\/a><\/figcaption><\/figure>\n<p>Bitcoin\u2019s recovery above $40,000 also helped spark strong rallies in most altcoins.<\/p>\n<p>Ether (ETH) gained of 11% to hit a daily high at $2,433, while Dogecoin (DOGE) posted a 7% gain and trades at $0.208. <\/p>\n<p>Other notable gainers include a 64% gain for Strike (STRK), a 55% rally in Venus (XVS) and a 20% breakout in VeChain Thor (VTHO) and Ankr (ANKR).<\/p>\n<p>The overall cryptocurrency market cap now stands at $1.46 trillion and Bitcoin\u2019s dominance rate is 47.4%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. 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Today&#8217;s rally to $40,581 was a continuation of the July 25 breakout&#8230;<\/p>\n","protected":false},"author":1,"featured_media":308797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvNzFjYTM0YmUtMzViMy00N2Y3LTlkMGItYzRhZWQwYzQzYTAxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74862,74937,74982,74863,86883,74891,74939,75150,79699,85699,73785],"class_list":["post-308796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-dogecoin","tag-ethereum","tag-market-analysis","tag-market-update","tag-vechain","tag-amp","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/308796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=308796"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/308796\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/308797"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=308796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=308796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=308796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}