Embellishment before the loss of $30,000? Bitcoin (BTC) is managing to hold above $31,000 thanks to a news story that has yet to be confirmed as true. While the bulls received this unexpected support today, July 16, 2021, the wind should be more in favor of the bears for the next few days.
Bitcoin at $32,000: Bank of America’s boost
The $31,000 is holding up for now, despite repeated tests of that support under bear pressure. The rise towards $32,000 follows unconfirmed reports that Bank of America has given the green light for Bitcoin futures trading.
This information saved $31,000, but Bitcoin is still a long way from $38,000, a level it is expected to hit this week if trader Michael van de Poppe’s July 12, 2021 forecast is to be believed. There are still 2 days to go for this prediction to come true, but in reality, the week is currently bearish and there is a good chance that this weekend will see the bears dancing in the markets.
Bear Days: Grayscale and DXY Weaken Bitcoin
Bank of America futures rumors may have given the bulls a boost today, but there are a few major events that could boost the bears over the next few days. Grayscale is set to release 16,240 BTC in 2 days. The markets could come under heavy downward pressure if investors decide to liquidate their holdings en masse. And even if this assumption turns out to be incorrect, the fear of heavy selling is enough to at best cripple the bulls and prevent any bullish rally, at worst put the markets in the red.
In addition to this event or non-event working more in the bears’ favor, the dollar could also be pulling Bitcoin’s price down. The DXY, which measures the strength of the dollar against a basket of major foreign currencies, appears to have formed a reverse head-and-shoulders pattern after a bearish trend. This may cause the dollar to gain strength soon, weakening a Bitcoin whose price is historically negatively correlated with the greenback.
Twitto analyst Nunyaz Bizniz had explained the reasons why $30,000 was a focal level. If the Bitcoin price were to fall below that, the decline could be compounded by liquidations of Tesla’s holdings.
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