Bitcoin (BTC) made a fresh breakout attempt on July 11 as the battle for yearly highs remained hot.
BTC/USD 1 hour chart. Source: TradingView
$31,000 reappears in BTC price leverage crunch
Data from Cointelegraph Markets Pro and TradingView showed BTC price briefly surpassing $31,000 ahead of the July 10 daily close.
In a mimic move seemingly using last week’s bounce as inspiration, BTC/USD managed to close in on resistance before momentum faded and subsequently fell back above $800.
After that, something of a sequel kicked in, and at the time of writing, Bitcoin was trading at around $30,500.
For Michaël van de Poppe, founder and CEO of retail company Eight, the overnight move had all the hallmarks of a “debt crisis”.
“Markets just keep fluctuating,” he told his Twitter followers in his latest update.
“Bitcoin had a leverage crunch for the last 24 hours, breaking through all the highs and then bouncing back to the start all at once. The only difference between now and Thursday? No new lows were made. $30,200 support. Don’t get turned off!” Annotated BTC/USD chart. Source: Michael van de Poppe/Twitter
Popular trader Crypto Daan compared the recent behavior to the “Bart Simpson” style chart features of yore, where the BTC price spiked to a plateau and stayed there, only to later bounce back to full growth. Currently, however, Bart has been replaced with a structure reminiscent of the Burj Khalifa.
Meanwhile, trader and analyst Rekt Capital called $30,600 as the level to flip.
“BTC is now breaking the ascending triangle resistance around $30,600. But it’s important to note that $BTC has broken through this level before, just to wick up,” he said during the overnight surge to $31,000.
“So BTC needs to turn ~$30,600 into support in the coming days for BTC to confirm its breakout.” Annotated BTC/USD chart. Source: Rekt Capital/Twitter
“Reaccumulation” as usual
Still, Bitcoin stayed in play in a familiar range for several weeks.
Related: CPI Meets Low BTC Supply – 5 Things to Know About Bitcoin This Week
In the latest edition of its weekly newsletter, The Week On-Chain, analytics firm Glassnode pointed out that this is characteristic of Bitcoin price cycles.
“Bitcoin data often shows oddly repeating patterns cycle after cycle. In the 2021-22 cycle, the $30,000 price level formed a kind of “midpoint” and was tested multiple times from both above and below,” it reads.
“A very similar level was observed in 2013-16 at around $425 and again in 2018-19 at around $6.5,000.” Mid-Cycle Bitcoin Comparison Chart (screenshot). Source: Glassnode
Glassnode added that “reaccumulation” is the buzzword that best fits the nature of the current BTC price action.
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