Main navigation

Bitcoin Fails to Go Through $40,000 While On-Chain Data Suggests Price Reversal

News
Fri, 07/30/2021 - 08:21
article image
Arman Shirinyan
Bitcoin is consolidating at the $40,000 mark for three days, which might mean that the growth is slowing down
Bitcoin Fails to Go Through $40,000 While On-Chain Data Suggests Price Reversal
Cover image via stock.adobe.com
Read U.TODAY on
Google News

Bitcoin's current price action suggests that recent growth is currently slowing down with on-chain data from Glassnode and blockchain.com.

First of all, the daily Bitcoin chart shows us that growth momentum is currently slowing down after an eight-day increase. The latest major Bitcoin move took place on July 27 with 8.7 percent growth.

Daily Bitcoin Chart
Source: TradingView.com

Currently, Bitcoin has failed to get through the $41,100 price resistance. At the same time, the chart suggests that we are seeing a progressive decrease in volumes.

Trading volume on Bitcoin exchanges has returned back to the values of July 26.

Bitcoin Volume
Source: Blockchain.com 

In addition to decreased volumes, we currently see a slow decrease in wallet activity data, suggesting that Bitcoin holders and traders are currently not moving their funds.

Previously, various analysts have expressed their feelings about the current market situation. They have agreed on the fact that Bitcoin must gain a foothold above $40,000 to regain bullish momentum and start moving further to the new ATH.

Bitcoin was struggling to get through a strong 200-day moving average resistance line on the chart multiple times. Experts have agreed that, if the price goes below the $40,000 price mark and 200-day moving average, we would see a new downward movement.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.