October 2020 Déjà vu? Bitcoin pullback at $38K has traders at odds over next move

The broader cryptocurrency market entered a period of consolidation on July 27 following Bitcoin’s (BTC) temporary spike above $40,000 the day earlier than that helped ignite a rally throughout the market and introduced a renewed sense of optimism to the market. 

Knowledge from Cointelegraph Markets Pro and TradingView reveals {that a} mid-day try by bulls to carry the value of BTC again above the $40,000 stage was rejected leading to a worth pullback to $37,500.

BTC/USDT 4-hour chart. Supply: TradingView

Whereas Tuesday’s worth pullback might counsel that Monday’s rally was merely a brief squeeze, others level to the rising Grayscale Bitcoin Belief (GBTC) premium, which is now at the highest levels in months at -5.88%, suggesting that establishments are as soon as once more betting on extra BTC worth upside. 

Bitcoin bulls battle to reestablish uptrend

Rumors that Amazon would start accepting cryptocurrency funds in 2021 helped ignite the market-wide rally seen on Monday, although officially denied by the corporate in a while. 

Nonetheless, as pointed out by pseudonymous unbiased market analyst Rekt Capital, Bitcoin’s worth chart reveals a fractal sample that’s much like the price-performance in October 2020, simply earlier than BTC worth started its run to a brand new all-time excessive.

If the same sample performs out within the present market, Bitcoin’s worth will see a continuation of the uptrend that the Amazon rumors initiated.

Not all the accessible suggests a continuation of the upward momentum, nonetheless, as was identified by Jarvis Labs analyst and co-founder, Ben Lilly, who has been monitoring on-chain knowledge to achieve deeper perception into the newest pump, notably with Ethereum’s London hard fork slated for Aug. 4.

Lilly said,

“Onchain exercise and demand hasn’t confirmed up. Pair this up with Amazon information as faux and shorts getting rekt, I would not be shocked to see low $30ks be4 1559.”

An instance of bearish bias, nonetheless, was provided by the pseudonymous Twitter person Bear Wolf, who noticed Monday’s developments as nothing greater than a brief squeeze amid a wider bear market.

“19Ok continues to be my goal for the tip of the bear market,” he wrote. “Useless Cat Bounce to 46Ok (Brief Squeeze). TA invalidates if we pump to 50Ok and discover assist >>ABOVE<< 46Ok.”

Associated: Sen. Warren urges Treasury Secretary Yellen to combat rising crypto threats

Altcoins give again positive aspects

A big proportion of the positive aspects seen within the altcoin market on Monday got again on Tuesday because the euphoria from the Amazon rumors subsided.

Every day cryptocurrency market efficiency. Supply: Coin360

Dogecoin (DOGE) and Solana (SOL) have been the 2 hardest-hit tokens within the prime 20, seeing losses of 10% and 10.8%, respectively, whereas Monday’s top performers Strike (STRK) and Venus (XVS) each dropped by 16%.

A pair of 30% positive aspects from Axie Infinity (AXS) and MyNeighborAlice (ALICE) marked the perfect performances of the day whereas the blockchain-based id administration resolution Civic (CVC) noticed its worth improve by 20%.

The general cryptocurrency market cap now stands at $1.488 trillion and Bitcoin’s dominance price is 47.8%.

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