Bitcoin price hits $34K as trader forecasts fresh weekend resistance showdown

Bitcoin is likely going to tackle $34,500 today or tomorrow, Michaël van de Poppe says, opening up the road to $36,000 or more.

Bitcoin (BTC) touched $34,000 on July 24 after the latest resistance flip held to propel the market higher.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin battles $34,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD just hitting the $34,000 on Bitstamp on Saturday before returning to linger around $200 lower.

The past 24 hours were profitable for traders as Bitcoin launched from $32,000 to deliver 4% gains that were holding above $33,800 at the time of writing. 

For Cointelegraph contributor Michaël van de Poppe, it was necessary for the strength to continue and for $32,500 to hold in the event of a retracement.

"Bitcoin breaks through that resistance at $32.5-$32.7K. Holding that for support = likely continuation towards $36K," he forecast in a Twitter update.

"Overall, the next resistance at $34.5K is possibly being reached during the weekend."

Such behavior would not be at all surprising given the wide trading range in which BTC/USD is currently acting — $42,000, the point of all-time highs from February, remains the range ceiling and line in the sand for a definitive bull market continuation.

Fellow trader and analyst Rekt Capital meanwhile highlighted ongoing changes with the 50-week exponential moving average (EMA) as a sign of longer-timeframe bullishness returning.

On the more cautious side, as Cointelegraph reported, $24,000 projections remain should Bitcoin reverse, with one trader eyeing a CME futures gap nearby as possible support.

"We see support at the $22k and 24k level should there be a breakdown below the current support level," trading suite Decentrader added in a fresh market update on Friday.

Ethereum "confirming" breakout

Altcoins meanwhile slowed the pace of their own gains but nontheless retained impressive performance over the week.

Related: Just HODL! Bitcoin and Ethereum outperform ‘lower risk’ crypto index funds

With many of the top fifty cryptocurrencies by market cap seeing weekly returns of 10% or more, confidence was returning to the market.

Ether (ETH), the largest altcoin, traded back above $2,000, hitting ten-day highs.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

"So far, so good towards confirming a breakout here," Rekt Capital said about ETH/USD performance.

Bitcoin mining is becoming vastly more decentralized in 2021

Data shows anonymous entities becoming an ever larger force on the Bitcoin mining scene this year and last.

Bitcoin (BTC) has become considerably more decentralized in the past year, one metric suggests — and the trend is growing.

According to data from on-chain data resource Blockchain, hash rate distribution is increasingly favoring small, unknown miners. 

Small guys increase slice of mining pie

Despite the past twelve months seeing a large price run-up, Bitcoin miners have not become more “corporate” — mining is actually seeing more anonymous, small-scale entities join in.

Looking at hash rate distribution, the trend is in evidence ever since the March 2020 crash, and this year has gathered pace.

The drawdown from $64,500 all-time highs precipitated the move towards smaller players, something which would be expected from a falling hash rate incentivizing them to mine.

Bitcoin mining hash rate distribution chart. Source: Blockchain

As Cointelegraph reported, meanwhile, the hash rate has stabilized over the past two weeks and begun reclaiming lost ground.

Analysis of revenues collected by the mining community as a whole underscores the recovery taking place, giving hope for the upward trend which characterized hash rate until May to resume.

At the time of writing, the hash rate totaled an estimated 95 exahashes per second (EH/s), up from the floor of 83 EH/s.

Bitcoin miner revenue chart. Source: Blockchain

Many miners "disproportionately sustainable"

Future changes among miners nonetheless appear to focus on larger players, which in the wake of the Chinese rout are gathering force in the United States and elsewhere.

Related: A green revolution in crypto mining? Industry answers wake-up call

A slew of announcements this month, including one mining firm planning to go public in the U.S., combines with news that the industry’s environmental credentials are changing rapidly.

“We’re also seeing a lot more disclosure from miners – 32% of the hash rate joined a council, Bitcoin Mining Council, and they produce quarterly disclosures now, and within that sample, the miners were 67% renewable or nuclear powered,” Nic Carter, co-founder of CoinShares, told CNBC Wednesday.

“So the miners that are disclosing — and a lot of these are western miners that are exposed to western capital markets — are disproportionately sustainable in their operations.”

Elon Musk, CEO of Tesla and SpaceX, hinted that Tesla may begin accepting Bitcoin for payments again in the coming months based on these environmental changes.

Bitcoin traders split on $40K chances as altcoins eye potential ’80-150%’ gains

Ranging continues for BTC/USD but conditions may be right for a late surge to range highs above $40,000.

Bitcoin (BTC) circled $32,000 on July 22 after excitement over fresh comments by Elon Musk resulted in strengthening of support.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC bulls regroup at $32,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD ranging between $31,500 and $32,000 overnight on Wednesday, hours after Musk joined others in praising Bitcoin during a conference panel.

As Cointelegraph reported, Musk's words came over broadly positive and less critical than many had assumed they would be — this in turn led to a brief price surge which topped out above $32,800.

Thereafter, familiar resistance kicked in and $32,400 once more became the level to flip, a feat which Bitcoin has yet to achieve.

Nonetheless, previous gains from below $30,000 remained intact, and there was equally little evidence of a major retracement about to kick in on Thursday.

"If we look at the price action of Bitcoin, we can clearly see and state that we're holding above $31K," Cointelegraph contributor Michaël van de Poppe said.

"If that sustains, and the market grants a higher low, I think we've found a temporary bottom & we'll test $40K."

Independent analyst and trader Keith Wareing was neutral about the Musk episode. He argued that since no resistance levels had truly cracked, nothing had fundamentally changed in the short-term BTC price landscape.

As such, buy and sell positions among traders likewise continued their trend from earlier in the week – with the addition of $33,000 slowly forming a resistance zone and support conversely stepping in at $31,000.

BTC/USD buy and sell levels (Binance) as of July 22. Source: Material Indicators/ Twitter

Van de Poppe: Altcoins would boom if Bitcoin takes off

Altcoins likewise cemented gains which commonly ranged between five and ten percent on the day.

Related: Altcoins secure double-digit gains after Bitcoin surges toward $33K

Dogecoin (DOGE), which began its run-up ahead of Musk's appearance, traded still below $0.20 at the time of writing, with daily returns nearing a more modest 8%.

Van de Poppe added that a scenario under which Bitcoin rises to range resistance at $40,000 or higher would have a much more pronounced impact on altcoin markets.

"This would lead altcoins to run 80-150% from here," he forecast.

Ether (ETH), the largest altcoin by market cap, was back at $2,000, launching away from support levels after briefly losing its 2021 higher lows trend earlier in the week.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

Bitcoin rebounds to $31.6K but warnings of another BTC price plunge are everywhere

Bitcoin is likely not out of the woods until a definitive bottom formation has been and gone, multiple commentators say.

Bitcoin (BTC) continued its bounce from its 2021 opening price on July 21, hitting $31,600 in what some fear is just a temporary reprieve from downside.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

"Short the bounce"?

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it gained a respectable 7% during Wednesday.

Bulls had successfully defended the largest cryptocurrency against further losses at just above $29,000 — the price at which the market began the year.

As Cointelegraph reported, however, concern is running high over current strength being a "relief rally" — not a true comeback after a price floor.

"It's still 'short the bounce' season," popular analyst and podcast host Nebraskan Gooner summarized to Twitter followers.

Veteran trader Peter Brandt concurred, suggesting that Bitcoin would need another shock leg down before the genuine return to form kicked in.

The latest spot volatility comes as Bitcoin network fundamentals delight market participants, these showing ever-increasing strength this month.

Hash rate was nearing 100 exahashes per second (EH/s) at the time of writing, edging closer to all-time highs of 168 EH/s from before the infamous China mining rout.

"Bitcoin network fundamentals have never looked better," MicroStrategy CEO Michael Saylor declared Tuesday.

Bitcoin estimated hash rate chart. Source: Blockchain

Difficulty, meanwhile, was still on track to increase at its next readjustment, despite the price dip.

Dogecoin shines ahead of Musk conference date

In altcoins, a welcome reversal of fortunes was still in play — many of the top fifty cryptocurrencies by market cap saw daily gains of nearly 10%.

Related: Bitcoin bull outlines 7 steps to more fiscal stimulus and higher BTC prices

A standout was Dogecoin (DOGE), which put in 14% returns ahead of proponent Elon Musk's discussion at Wednesday's "The B Word" conference. 

Crypto players more broadly will be watching for cues from the event, which features Musk in discussion with ARK CEO Cathie Wood and Jack Dorsey, CEO of Twitter and payment company Square.

DOGE/USD 1-hour candle chart (Bittrex). Source: TradingView

Sunday’s GBTC unlock held more shares than the remaining events combined

Even if unlocking events were able to directly spark Bitcoin sell-offs, the worst is easily over, data shows.

Bitcoin (BTC) is rebounding despite the ongoing Grayscale Bitcoin Trust (GBTC) unlocking events — and most shares are already released.

According to data from tracking resource Bybt, the remaining unlockings combined involve fewer shares than those which were released on just one day last weekend.

Putting an end to GBTC "FUD"

July 18 saw around 16,240 BTC worth of GBTC shares end their six-month lock-up period. The largest such release in a single day, the event saw a hefty build-up, with arguments raging over its likely impact on the Bitcoin price.

Monday's BTC price dip was timely when it came to GBTC, fitting a narrative that a sell-off would follow such large releases.

Even if that were true, Bitcoin hodlers now have a silver lining — unlockings are only scheduled until August 25, and the outstanding shares are fewer in number than Sunday's tranche.

GBTC unlocking chart. Source: Bybt

In reality, however, supporting evidence for unlockings resulting in sell-offs is lacking. As various sources stress, Bitcoin markets themselves are in fact left out of such events altogether — GBTC shares cannot be redeemed for BTC, which could then theoretically be dumped for cash or stablecoins.

"Grayscale just had the biggest GBTC unlock today and nothing exploded," popular Twitter commentator Lark Davis wrote on Monday, citing the Bybt figures.

"One more big unlock on the 20th and then the whole GBTC crashing bitcoin narrative will be over. What FUD will they come out with next?"

That "FUD" had nonetheless infiltrated some of the best-known names in finance, including banking giant JPMorgan.

"Selling of GBTC shares exiting the six-month lockup period during June and July has emerged as an additional headwind for bitcoin," a report claimed earlier this month.

CEO confident over GBTC performance

As Cointelegraph reported, meanwhile, interest in GBTC and Grayscale's other products remains.

Related: Grayscale ‘100% committed’ to turning GBTC into Bitcoin ETF — CEO

Both Rothschild Investment Corp and ARK Invest have added to their holdings in July, the latter boosting its Bitcoin exposure by an additional 310,000 shares.

"GBTC's doing hundreds of millions of dollars a day in notional trading volume, and it really is the easiest way for many investors to add crypto exposure alongside stocks, bonds, ETFs, other things they may own," Grayscale CEO Michael Sonnenshein told Bloomberg Monday.

A survey of institutions by asset manager Fidelity likewise revealed positive long-term approaches to cryptocurrency, with 71% of responses planning a market entry in the future.

Bitcoin bulls defend yearly open after BTC price rebounds 5.5% from $29K

Bitcoin rebounds after going full circle in 2021 to almost — but not quite — hit its Jan. 1 opening price.

Bitcoin (BTC) bulls could celebrate a modest victory on July 21 after record bids kept BTC/USD its 2021 opening price.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$31,000 back in play for BTC

Data from Cointelegraph Markets Pro and TradingView showed the largest cryptocurrency avoiding a trip lower than $29,000 over the past 24 hours.

After breaking through $30,000 support, concerns swiftly mounted that Bitcoin would surpass even its May lows and continue towards $24,000 or lower.

These ultimately did not come to pass, thanks to, as Cointelegraph reported, the "biggest bid ever" keeping bears working.

With that, BTC/USD was back above $30,000 at the time of writing on Wednesday, but whether or not the bottom is in was a major topic of discussion.

For Cointelegraph analyst Michaël van de Poppe, the fact that Bitcoin had not matched its May levels left the door open for a restest. More broadly, behavior both then and now conformed to a trading pattern which had not yet broken down.

"Bitcoin is still acting inside this range of wicks," he summarized before the rebound.

"Didn't take liquidity fully as there are still some wicks to take the liquidity from. However, the daily candle on Ethereum is interesting, as that one is in support. Let's see whether we lose this and reach $26K next."
BTC/USD scenario with support and resistance zones. Source: Michaël van de Poppe/Twitter

He added that Bitcoin was "insanely cheap" at sub-$30,000 levels.

Fellow trader Crypto Ed shared his sense of foreboding, arguing that it was not yet time for a true recovery.

Orderbook data showed resistance building at $31,000 on the day, placing a hurdle in the way of bulls who had propelled the market 5.5% higher to a local top of $30,900. Support at $29,000 and under, despite its prior test, remained in place.

BTC/USD buy and sell levels (Binance) as of July 21. Source: Material Indicators/Twitter

Altcoins stage strong comeback

Altcoins welcomed the relief rally in Bitcoin, Van de Poppe's curiosity over Ether (ETH) well founded as it gained nearly 6% in hours.

Related: Fed takes on stablecoins: 5 things to watch in Bitcoin this week

Previously, the largest altcoin had lost a trend of higher lows which had characterized it throughout 2021.

Gains of up to 20% meanwhile featured across the top fifty cryptocurrencies by market cap, underscoring altcoins' current sensitivity to Bitcoin's movements.

The total cryptocurrency market cap returned above $1.25 trillion.

Bitcoin erases 2021 gains as BTC price falls to ‘biggest bid ever’ on Binance

BTC is back at square one when it comes to this year's bull market, but unparalleled bids are doing their best to halt any further losses.

Bitcoin (BTC) breaking below $30,000 has cost it almost all of its 2021 bull run gains — but a historic silver lining is ready to rescue bulls.

Data from crypto exchange Binance's order book confirms that BTC/USD has almost dipped to the strongest support zone ever seen.

BTC price arrives at "biggest bid ever" 

It has been a rough 24 hours for Bitcoin hodlers, and the rout doesn't seem to be over yet. After losing 6% overnight, BTC/USD hit lows of $29,300 — $300 below where it opened at the start of the year.

With that, despite reaching lofty highs of $64,500 just three months ago, Bitcoin is de facto back where it started before the most intense phase of its latest bull run kicked in.

Those who fear that all is lost — at least for the short term — may be happy to discover that that same level currently hosts the biggest Bitcoin "bid" ever seen.

As revealed on July 20 by "Material Scientist," the creator of monitoring resource Material Indicators, BTC/USD is now being propped up by unprecedented demand.

"We just hit the largest bid ever," Material Scientist summarized.

"Would take some massive FUD to break it. So, I think upside is more likely."

The idea of Bitcoin breaking below current levels is, nevertheless, far from fantasy for traders, with predictions of $24,000 or even a $14,000 "Armageddon scenario" circulating online.

Additional order book data from Binance shows relatively little resistance between the spot price and $35,000, something that could make a rebound easier to engineer.

BTC/USD buy and sell levels (Binance) as of July 20. Source: Material Indicators/Twitter

At the time of publication, Bitcoin circled $29,700 as relative stability returned to the market.

"Parabolic" smaller hodlers feast

Meanwhile, the latest figures covering investor activity around Bitcoin have produced some surprising results.

As noted by statistician Willy Woo on July 20, it is now the smaller hodlers who are amassing BTC, even as the largest whales divest themselves of their holdings.

Related: Rothschild Investment Corp has increased its Bitcoin exposure by 300% since April

"Wee little fishies are going parabolic," he commented.

"This is the ratio of supply held by holders of 0-10 BTC vs 100+ BTC (Dolphins to Humpback Whales). PS. Little guys hold 32% of what the big guys hold, and that does even not include their loot on exchanges or ETFs."
Bitcoin investor ratio chart. Source: Willy Woo/Twitter

This makes 2021 look more akin to 2013 than 2017 in terms of post-halving bull run years, a common narrative in recent weeks.

Rothschild Investment Corp has increased its Bitcoin exposure by 300% since April

Rothschild Investment Corp has bought more Bitcoin and Ethereum exposure via Grayscale despite the ongoing crypto market retreat.

Billion-dollar investment firm Rothschild Investment Corp quadrupled its exposure to Bitcoin (BTC) since April, new records show.

In a filing with the United States' Securities and Exchange Commission (SEC) on July 17, Rothschild confirmed that it now owns 141,405 shares of the Grayscale Bitcoin Trust (GBTC). 

Rothschild GBTC shares near 150,000

A quiet but nonetheless substantial player among institutions, Rothchild Investment Corp has also invested in Grayscale's Ether (ETH) equivalent, the Grayscale Ethereum Trust.

Its exposure to Bitcoin has increased considerably this year, the filing shows — in April, its GBTC shares totaled 38,346.

In BTC terms, with each GBTC share equal to 0.000939767 BTC, Rothschild thus has an equivalent Bitcoin exposure of 132.8 BTC ($3.94 million).

The data implies that declining prices have not fazed executives, Bitcoin maintaining a drawdown for three months after hitting its all-time highs of $64,500 in mid May.

As Grayscale CEO Michael Sonnenshein noted this week, institutional players are likely taking little notice of short-term price moves, instead concentrating on a much lower-time-preference strategy when it comes to cryptocurrency.

"Investors in this asset class are really not focused on... short-term movements in price," he told CNBC.

"These are really investors looking at their allocations in the medium to long term, and so any volatility or dampening of volatility is not something anyone is fazed by."

On Monday, ARK Invest purchased a reported 310,000 GBTC shares of its own, bringing its combined holdings to 8.81 million or 0.5% of its portfolio. At its peak, GBTC represented 0.9% of the ARK portfolio in late March.

ARK Invest GBTC holdings vs. GBTC price chart. Source: Cathie's Ark

Good timing for Grayscale FUD?

As Cointelegraph reported, Grayscale is at the center of discussions this week as it unlocked over 16,000 BTC worth of GBTC shares on Sunday.

Related: Institutional demand for Bitcoin evaporates as BTC struggles below $31K

Concerns, while arguably unfounded, long abounded that the event would create downward Bitcoin price pressure, with the sharpening of the drawdown on Monday and Tuesday fuelling the fire.

Grayscale GBTC flows. Source: Bybt.com

Regardless, since GBTC investors cannot redeem shares for BTC and then sell for fiat currency, Bitcoin markets are in fact left out of the equation when it comes to unlockings.

Grayscale itself only sells a tiny amount of the Trust's BTC holdings for fund management purposes.

Crypto joins stocks in ‘extreme fear’ after Bitcoin loses $30K support

A rout in sentiment in both crypto and traditional markets underscores the "extreme fear" surrounding Bitcoin's move below $30,000.

Bitcoin (BTC) failed to regain $30,000 after losing support on July 20 as fear & greed indices raced each other to the bottom. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC price stays below $30,000 waterline

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continue trading in the $20,000-$30,000 zone on Tuesday.

The largest cryptocurrency saw a turbulent night's price action, abruptly adding to existing losses to seal 24-hour negative returns of -6%.

The move came in tandem with a souring sentiment on traditional markets. The Fear & Greed Index, which uses a basket of factors to determine the mood among market participants, fell into the "extreme fear" zone on Tuesday, measuring 17/100.

At the same time, the cryptocurrency equivalent, the Crypto Fear & Greed Index, raced to catch up, dropping to 19/100 — also denoted as "extreme fear."

Crypto Fear & Greed saw local lows of just 10/100 last month, while the traditional counterpart's score has halved in a week.

Crypto Fear & Greed Index as of July 20. Source: Alternative.me

Perhaps predictably, traders were more than cautious.

"Rejects $32.3K, Rejects $31K, and now at the next support zone," Cointelegraph's Michaël van de Poppe warned.

"No real run of volume yet, through which the liquidity tap should still happen or we'll see a test at $24K for Bitcoin."
BTC/USD scenario with support and resistance zones. Source: Michaël van de Poppe/ Twitter

On Monday, fellow trader and analyst Rekt Capital had summed up the grim picture on spot markets, concluding that downside was more likely to prevail. In the event, BTC/USD fell almost exactly to his target zone.

"BTC has lost Weekly support (black) and convincingly lost the blue 50-week EMA," he summarized on Twitter alongside the relevant chart.

"BTC has failed to preserve the bullish momentum that originated in the green box. In fact, sell-side pressure may mount on BTC and may force a return to the green area soon."
BTC/USD scenario with support and resistance zones. Source: Rekt Capital/ Twitter

Altcoins double daily losses

A look at buy and sell positions on major exchange Binance meanwhile showed support remaining in place between $27,000 and $29,000 despite the price dip.

Related: Institutional demand for Bitcoin evaporates as BTC struggles below $31K

Resistance, on the other hand, was thin below $35,000, providing a silver lining for bulls hoping for a swift rebound should the market find fuel for a U-turn back above the $30,000 mark.

BTC/USD buy and sell levels (Binance) as of July 20. Source: Material Indicators/Twitter

Altcoins compounded existing weakness as Bitcoin fell, with many of the top fifty cryptocurrencies by market cap hitting 20% weekly losses.

Ether (ETH), the largest altcoin, lost a longer-term 2021 uptrend on Monday, continuing to trade below $1,800.

Bitcoin price dives below $31K after lowest weekly close in 8 months

It’s doom and gloom for Bitcoin a day after the feared Grayscale unlocking event, with altcoins performing even worse.

Bitcoin (BTC) fell below $31,000 support on Monday after sideways trading gave way to downside pressure. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Fresh pain for BTC price

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local lows of $30,630 on Bitstamp on Monday.

Coming a day after Bitcoin's lowest weekly close since December 2020, the price action underscored the sensitivity of a market with low volume and network fundamentals still in their recovery phase.

Traders had broadly predicted a move downward after Bitcoin had failed to hold on to support levels higher up, with the integrity of $30,000 itself being called into question.

“Volatility, finally for Bitcoin,” in-house trader and analyst Michaël van de Poppe summarized.

BTC/USD buy and sell levels (Binance) as of July 19. Source: Material Indicators/Twitter

At the time of writing, BTC/USD circled $30,700 with daily losses at around 3%. A glance at buy and sell orders on major exchange Binance showed considerable demand remaining at $27,000 and upward, reducing the likelihood of a deeper dive beyond that area.

Among market participants, it was all about catching the likely price bottom.

Earlier, van de Poppe had also suggested that the ultimate BTC price floor may not come as a result of a sudden dive or have clearly defined characteristics.

A daily close below $31,000, nonetheless, has not happened since January.

Altcoins suffer at the hands of Bitcoin bears

Bitcoin’s dive, meanwhile, sparked instant pain for altcoins, which often doubled the largest cryptocurrency’s hourly losses.

Related: Bitcoin sees second-longest bull market drawdown with BTC price 'stuck' at $30K

Ether (ETH) shed nearly 8% on the day to hit $1,800 support, highlighting a fragile altcoin environment still at the mercy of Bitcoin sentiment. 

A possible overall explanation lay at the door of the Grayscale Bitcoin Trust, which on Sunday completed a 16,000-BTC unlocking event, which only a day later could have an opportunity to impact the market.

Today, Grayscale CEO Michael Sonnenshein told CNBC in an interview that the regulatory discussion on Bitcoin exchange-traded funds is entering its ‘’final stages’’ and that the company is committed to turning GBTC into such a product.

Grayscale ‘100% committed’ to turning GBTC into Bitcoin ETF — CEO

Bitcoin is just a “couple of points of maturation” away from getting an approved ETF in the U.S., says Grayscale CEO.

The head of crypto investment giant Grayscale believes that only a “couple of maturation points” separate the United States from its first Bitcoin (BTC) exchange-traded fund (ETF).

Speaking to CNBC on July 19, Michael Sonnenshein reiterated that a U.S. ETF is a matter of “not ‘if,’ but ‘when.’”

Sonnenshein: “If, not when” for U.S. Bitcoin ETF 

Regulators currently have 13 ETF applications under consideration, and the U.S. lags behind neighboring Canada when it comes to giving them the green light.

Years of applications and rejections have gone by, and some believe that an ETF would ultimately create bearish price pressure for Bitcoin in the long term.

Nonetheless, Grayscale CEO Sonnenshein says the firm is “100% committed” to transforming its Bitcoin product, the Grayscale Bitcoin Trust ($GBTC), to ETFs once conditions are right.

“I think in our seat, from our view of the world, we’re really looking for a couple of different points of maturation in the underlying market, and that’s really the final stages of what we think regulators need to approve those types of products and give investors the protections that they’re looking for,” he told the network.

Last week, Grayscale announced a partnership with U.S. banking giant BNY Mellon, which will now provide services for GBTC when it undergoes its metamorphosis.

GBTC is already in the headlines in crypto circles over its unlocking events, the largest of which occurred Sunday, with opinions mixed over their potential price impact.

Not all quiet on the western front

Institutional advances continue to surface this month despite low volumes and overall lack of direction on the market.

Related: Historically low spot volumes and investor indecision weigh on Bitcoin price

As Cointelegraph reported, Bank of America reportedly gave the green light for Bitcoin futures trading last week.

A survey meanwhile showed that existing institutional BTC investors are far from done with the asset, with 40% saying they plan to buy more in future.

Fed takes on stablecoins: 5 things to watch in Bitcoin this week

Bitcoin continues its recovery from the China mining debacle but price action remains delicate in a low-volume market.

Bitcoin (BTC) emerges into a new week with middling price action and optimistic fundamentals — what could the coming days have in store?

Still holding $30,000 support, there’s little about Bitcoin to truly excite traders, but volatility has already reminded them of its presence over the past week.

As a recovery in mining continues, everyone is playing a game of “wait and see” when it comes to the 2021 Bitcoin bull market.

Cointelegraph takes a look at five things that might give BTC price action some direction in the short term.

Dollar sees strength as stocks calm advance

It’s a classic summer picture in equities — a slight comedown last week followed all but constant gains, with caution coming from Covid-19, inflation and other triggers.

This time of year, however, is renowned for its lack of action, and even recent changes amount to little on a wider scale.

“The Covid backdrop is just one of several factors that may be adversely impacting the reflation trade,” Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, wrote in a note quoted by Bloomberg.

The U.S. dollar gained some strength from the modest shake-up in stocks, with the U.S. dollar currency index (DXY) climbing toward 93.

As Cointelegraph reported, DXY’s inverse correlation to Bitcoin remains in the spotlight for some — a short-term peak for the index may correspond to price pressure for BTC/USD.

Another focus is oil on the back of a lessening of tensions among OPEC+ members and a fresh agreement to boost output. While traditionally less impactful on Bitcoin behavior, any unexpected volatility can provide fuel for a low-volume cryptocurrency market.

This was witnessed last week, as reports of Bank of America greenlighting Bitcoin futures trading for select clients swiftly sent BTC/USD $1,000 higher.

Actions by another bank, namely the U.S. Federal Reserve, may be more important this week. A working group on stablecoins will get the attention of Treasury Secretary Janet Yellen when it is convened with the goal of "intra-agency work."

Weekly candle raises risk of $29,000 drop

On spot markets, Monday began with hope for the future rather than confidence in current price events.

The weekend saw seesawing from BTC/USD, still unable to beat resistance at $32,000 or higher but likewise apt to avoid tests of $31,000 support.

At the time of writing, $31,750 formed a focus on lower timeframes, with ranging firmly the defining feature of the hourly chart.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“It's time for a green week for Bitcoin,” popular trader Michaël van de Poppe ventured.

Talk of if and when a Bitcoin price bottom could occur remains a major talking point. As Cointelegraph noted on Sunday, the drawdown from the most recent all-time high of $64,500 has now lasted for three months — the second-longest ever within a bull cycle.

With popular opinion favoring a return below $30,000, Van de Poppe argued that a bottom may not be as dramatic as expectations demand.

“A bottom usually doesn't look great, as the majority of the people are expecting further downwards movements of the markets,” he told Twitter followers.

“A bad weekly candle doesn't have to mean prices are going to fall further.”

That candle did indeed disappoint, with Sunday’s weekly close on BTC/USD being its lowest of 2021 so far.

For trader and analyst Rekt Capital, an ability to reclaim $32,000 is a problem in itself, opening up the path to levels around $29,000.

“Bitcoin is threatening to lose its Weekly support (~$32000). Today is the last day for $BTC to reclaim this support,” he warned Sunday alongside an accompanying chart.

“Lose it and there is little higher timeframe support to stop BTC from another revisit of the green area.”
BTC/USD scenario with support and resistance zones. Source: Rekt Capital/ Twitter

Difficulty beats expectations

In contrast to price, Bitcoin’s network fundamentals continue their march back to strength after the unprecedented events of May and June.

The network hash rate, still holding up above its local low of 83 exahashes per second (EH/s), has not seen any further major setbacks as miners relocate away from China.

The real signs of progress, however, come from difficulty.

This weekend’s automated readjustment saw difficulty dip by a modest 4.8% — a pleasing contrast from prior estimates. Two weeks beforehand, difficulty was forecast to decrease more than ever — by almost 29% — which slowly improved through the two-week difficulty cycle.

Now, Bitcoin is on track to have its first positive readjustment since before the May price crash.

The changes speak to Bitcoin’s unflinching ability to monitor itself and incentivize miners back to the network while continuing to process transactions unhindered.

As such, commentators believe that the worst of the recent upheaval is firmly in the past.

“The hangover of a difficulty adjustment downwards from the China crackdowns should conclude after this adjustment,” Kevin Zhang, vice-president of Digital Currency Group mining advisory subsidiary Foundry Services, said at the weekend.

“Expecting to see the hashrate and difficulty to slowly recover from here.”
Bitcoin difficulty chart. Source: Blockchain

Meanwhile, both hash rate and difficulty have dipped below their levels at the May 2020 block subsidy halving.

Funding rates stay cool

On-chain indicators are anything but bearish, but it’s the sustained nuanced signals, which are on the radar this week.

Specifically, funding rates across exchanges have remained neutral or lightly negative throughout the recent price volatility — a hopeful insight into traders’ mindset.

As Cointelegraph reported, large whales appear alone in being apt to sell at current levels, with other investor profiles conversely buying up the supply.

In terms of volume, however, a $30,000 Bitcoin is predictably uninteresting. Both futures and PayPal volumes have decreased significantly, the former returning to levels from late last year.

Crypto futures open interest and volume chart. Source: Bybt

Infamous Bitfinex shorts "unwind"

The weekend’s price action was accompanied by fluctuating bets among large-volume investors.

Short positions on Bitfinex, a driver of short-term volatility as witnessed throughout the past weeks, ebbed and flowed.

On Monday, shorts were decreasing further, as the market waited for cues over general direction.

BTC/USD shorts 1-day candle chart (Bitfinex). Source: TradingView

$31.5K Bitcoin price on track for lowest weekly close of 2021

Performance remains grimly sideways on the day of the largest GBTC unlocking event.

Bitcoin (BTC) was on track to lose nearly $3,000 this week as a weekend of mixed price behavior came to an end.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader hopes for last-minute BTC price volatility 

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading at just above $31,500 late Sunday — a potential -$2,800 weekly candle.

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

The weekend had produced little by way of surprises, with Bitcoin moving within a predictable range after seeing an initial brief spurt over $32,000 Friday.

Despite retaining $31,000 support and so far not retesting $30,000, Bitcoin was nonetheless on track to seal its lowest weekly close since December 2020.

While some traders and analysts expressed their lack of satisfaction with spot price action after two months of hovering in the same range, others were still mindful of potential disruption.

"Wouldn’t surprise me if we get a random move in the final 2-3 hours of this weekly candle on Bitcoin," Michaël van de Poppe told Twitter followers.

Sunday marked the date of the largest in a series of unlockings at the Grayscale Bitcoin Trust ($GBTC). An event anticipated with nervousness by many, any obvious impact on price behavior had yet to be seen at the time of writing.

GBTC unlocking schedule. Source: Bybt

Altcoins set to lock in losses

Altcoins looked similarly lackluster on Sunday, with many of the top fifty cryptocurrencies by market cap lining up weekly losses akin to Bitcoin's -8%.

Related: Bitcoin sees second-longest bull market drawdown with BTC price 'stuck' at $30K

Ether (ETH) hovered at $1,900, still clear of a support zone around $100 lower, while Amp (AMP) managed daily gains of 12%.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

The overall cryptocurrency market cap stood at $1.294 trillion, with Bitcoin's share at 45.9%, a touch lower versus Friday.

Bitcoin sees second-longest bull market drawdown with BTC price ‘stuck’ at $30K

Bitcoin bull markets frequently see corrections from all-time highs, but only 2013 has beaten this year in terms of waiting times for a rebound.

It's now three months since the last Bitcoin (BTC) all-time high, but one measure suggests that holders may be waiting even longer for the next.

In a series of tweets on July 17, analytics service Ecoinometrics revealed that this year's descent from all-time highs is the second-longest in Bitcoin bull market history.

$30,000 may stay "for a while"

It's been 95 days since BTC/USD hit $64,500 and a major correction phase began. Investors are impatient, but despite strong fundamentals, Bitcoin spot price action seems in no hurry to leave $30,000 behind.

At 55% below the highs, Bitcoin is also threatening to cause problems for price forecasting models, including the historically unparalleled stock-to-flow.

If history is a guide, however, Bitcoin can still go sideways for months before rising to beat its record. As Ecoinometrics notes, 2013 saw a period of 197 days between two all-time highs.

"This is one of the longest drawdown Bitcoin has had to deal with during a post-halving bull market," it acknowledged in Twitter comments.

"But 95 days is still only half the duration of the big drawdown of 2013."
Bitcoin drawdown comparison graphic. Source: Ecoinometrics/ Twitter

Back then, BTC/USD reached a price floor 69% below its previous all-time high, meaning that the current market setup could also permit levels below $30,000 and still remain within historical norms.

More broadly, however, 2013 is now looking like the year most similar to Bitcoin price events this year.

"In terms of price trajectory this correction also looks very similar to 2013," Ecoinometrics concluded.

"If we continue like that, BTC will remain stuck around $30k for a while..."

Retail investors are anything but gone

As Cointelegraph reported, recent on-chain behavior has painted $30,000 as more than just a psychological trading zone for Bitcoin.

Related: Bitcoin price can only go up if $30K accumulation ‘reset’ continues — Research

In addition to multiple metrics supporting its importance, investors are beginning to accumulate coins once again, including those who previously sold at current levels.

Over the weekend, statistician Willy Woo updated the picture, highlighting retail investors buying and different classes of whales balancing each other out between buys and sells.

"It's retail that drive Bitcoin bull markets. When they stop buying, that's a bear market warning. They haven't stopped buying," he tweeted alongside multiple charts on Saturday.

"Last 30 days: Whales sold 4k BTC, plebs bought 31k BTC."
Flows to Bitcoin entities with less than 1 BTC vs. BTC/USD annotated chart. Source: Willy Woo/ Twitter

Bitcoin price passes $32K with traders wary of ‘relief rally’ if resistance stays

Bitcoin may not be able to make good on its Bank of America pump if its daily close fails to impress.

Bitcoin (BTC) passed $32,000 later on July 16 as positive reactions over Bank of America's (BoA) Bitcoin futures go-ahead continued.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin nears $32,300 point of interest 

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rising 1.4% on the day to hit new local highs of $32,150 on Bitstamp.

The pair saw an abrupt reversal of trajectory on the BoA announcement, having previously tested $31,000 support repeatedly throughout the day.

As such, a key zone to retake for potential bullish continuation, $32,300, was now back on the menu, this seeming an unlikely goal just hours before.

For trader and analyst Rekt Capital, current levels are key when it comes to the daily close.

"BTC needs to reclaim orange as support if BTC is to maintain the upper half of this blue wedging structure," he said alongside an explanatory chart.

"If BTC can't reclaim orange as support, today's recovery could merely be a relief rally to confirm orange as resistance."
BTC/USD 1-day candle chart with wedging structure. Source: Rekt Capital/ Twitter

As Cointelegraph reported, on the lower end, $31,000 remained as a crucial breaker whose failure to hold would open the door to $24,000.

Altcoins pare daily losses

Bitcoin's latest move had an instantaneous knock-on effect for altcoins.

Whereas daily losses across major cryptocurrencies were typically 5% on Friday, these swiftly dissipated and some altcoins even began posting gains.

Largest altcoin Ether (ETH) traded at $1,923 at the time of writing, launching towards the $2,000 level away from a support zone nearer $1,800. 

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin bounces off $31K after Bank of America greenlights BTC futures trading

Little change on Bitcoin markets as sideways trading continues and a clear bear trend is yet to enter decisively.

Bitcoin (BTC) continued to bounce off $31,000 support during Friday as fresh data reinforced the importance of current price levels.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

No trip to $42,000?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD repeatedly testing but, so far, not breaking through $31,000 on Friday.

A late surge to near $32,000 then entered as unconfirmed reports surfaced that Bank of America had given the go-ahead for Bitcoin futures trading.

Market participants held mixed opinions about the short-term outlook, with popular trader Michaël van de Poppe noting on Thursday that $31,000 was something of a final frontier for Bitcoin — lose it, and $29,000 or even $24,000 would logically be next.

Fellow trader Crypto Ed also appeared undecided on the day. Earlier in the week, he had argued that Bitcoin could stage a shock rebound and hit its range highs of $42,000 before reversing downward yet again to challenge $30,000 support.

“BTC making new lows is invalidating the idea of continuation of that bounce,” he wrote in an update. Even a comedown for the United States dollar currency index (DXY), traditionally inversely correlated with BTC, is unlikely to help bulls significantly, he added.

Meanwhile, new data showed considerable on-chain activity having occurred at current price levels.

According to on-chain monitoring resource Glassnode, 9.93% of the Bitcoin supply moved between $31,000 and $34,300 — a clear zone of interest for both buyers and sellers.

“This is now convincingly the largest realised volume cluster since $12k,” the firm commented

Bitcoin UTXO realized price distribution annotated chart. Source: Glassnode/Twitter

Previously, Cointelegraph noted that $30,000 itself forms an important level in the minds of both small and large traders, whose behavior has flipped from a “sell” to a “buy” mentality in recent weeks.

Altcoins lose out on middling sentiment

A look at altcoins, meanwhile, underscored the lack of bullish sentiment across cryptocurrency markets as the week came to a close.

Most of the top 50 tokens by market capitalization saw heavier losses than BTC/USD, these reaching up to 12% amid an absence of price triggers.

Ether (ETH), the largest altcoin, was heading to a crucial support zone of its own around $1,800. The start of a new accumulation period was now “very likely,” van de Poppe said in a YouTube update on Thursday prior to volatility reentering.

Bitcoin’s rising dominance, hitting 46% on the day, added to altcoins’ woes.

Bitcoin price tumbles to ‘final support’ as trader warns of $24K BTC price target

A failure to retain $31,000 would mean that $29,000 and then $24,000 are on the menu, says Michaël van de Poppe.

Bitcoin (BTC) dropped to its "final support zone" above $31,000 on July 15 as a low grind downward brought fresh predictions of a BTC price crash.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Binance debacle spreads as $32,000 falls

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting fresh local lows of $31,550 on Thursday.

The pair had made little progress overnight, falling further as Italian lawmakers said that major exchange Binance was unauthorized to trade in their jurisdiction.

The latest in a series of setbacks for the exchange, a spokesperson nonetheless told the mainstream media that its operations were unaffected by the announcement.

"We take a collaborative approach in working with regulators and we take our compliance obligations very seriously," the spokesperson commented, quoted by Reuters.

As such, there remained little cause for optimism among spot traders. For popular trader Michaël van de Poppe, $31,000 represented Bitcoin's last hope of avoiding a more series dip.

"Bitcoin didn't hold the $32.4K level as support and dipped lower, through which it's facing the final support zone to hold (the $31-31.5K region)," he summarized earlier on the day.

"If this is lost, $29K and $24K are the next zones."
BTC/USD annotated chart. Source: Michaël van de Poppe/ Twitter

Holiday blues?

The price headache is being exacerbated by a conspicuous lack of interest among investors, with low volumes meaning a sustained bullish uptick is unlikely.

Related: It’s fine’ to buy Bitcoin as gold substitute, says Trump ex-Treasury Secretary Mnuchin

As data from on-chain monitoring resource Glassnode revealed, however, it may be a seasonal, rather than an emotional phenomenon.

"Investors aren't selling, they are simply on holiday," co-founders Yann Allemann and Jan Happel argued, pointing to a significant reduction in exchange transaction fees.

Bitcoin total exchange transaction fees annotated chart. Source: Yann & Jan/ Twitter

As Cointelegraph reported, further data shows that accumulation is underway even by investors who sold when BTC/USD hit $30,000 on the way to current all-time highs.

‘It’s fine’ to buy Bitcoin as gold substitute, says Trump ex-Treasury Secretary Mnuchin

What seems to be a full reversal on a previously hostile Bitcoin stance is tempered by Mnuchin, who added that he still wouldn't be buying BTC himself.

Bitcoin (BTC) may be a "scam" for former U.S. president Donald Trump, but his treasury secretary appears to have made a U-turn on the world’s first and best-known cryptocurrency.

Speaking to CNBC on July 14, Steven Mnuchin confirmed that his perspective on Bitcoin had "evolved."

Mnuchin: Bitcoin stance has "evolved a little"

The Trump administration was known for its dismissive tone on Bitcoin in public, and those hoping for endorsement from Trump were ultimately left disappointed.

Mnuchin himself was less than inclined to offer support during his Treasury tenure, but his most recent comments reveal a clear softening of his stance.

"I think my view has evolved a little bit, but it is pretty consistent," he told the network.

"The first part is I think underlying technology of Blockchain is really incredible and has lots of different things, particulalry in fintech and finance. I think as it relates to Bitcoin, if people want to buy Bitcoin as a subsititute — no different from buying gold or some other asset — it's fine."
Gold (blue) vs. BTC/USD (orange) performance since 2020. Source: Tradingview

Mnuchin added that he "would not want to have" Bitcoin is his portfolio, but stressed that he was not against others adopting it.

Continuing, he expressed a desire for Bitcoin to have "complete BSA and regulatory compliance."

"As a matter of fact, under the OCC last year, we approved that banks could custodian it, and the reason we did that is because we wanted to make sure that this was becoming in the regulated world."

His words garnered praise from Bitcoin circles, with Saifedean Ammous, author of "The Bitcoin Standard," calling the changes "nice to see."

Bitcoin still has few political allies

Mnuchin's perspective now sounds increasingly at odds with that of Trump, who last month flatly called Bitcoin a "scam" in an episode which ultimately failed to impact market sentiment.

Related: Biden nominee for Treasury Dept will prioritize crypto regulation

The picture under current president Joe Biden has meanwhile yet to offer much to Bitcoin proponents. Treasury secretary Janet Yellen has voiced concerns about cryptocurrency more widely, and senior politicians are at odds over how to address it.

It is not just a U.S. predicament — El Salvador passing a Bitcoin legal tender law in June drew adverse reactions from global financial bodies including the World Bank and International Monetary Fund.

The law, which enters into effect in September, is so far without comparison anywhere in the world. Paraguay, which presented a regulatory bill on Bitcoin this week, has not revealed plans to adopt a "Bitcoin standard."

New data hints why Bitcoin price action has spent two months at $30K

Multiple factors demonstrate why $30K is so important for for BTC/USD within an ongoing price "supercycle."

Bitcoin (BTC) has seen almost two months of rangebound price moves after hitting $30,000 — and new data hints why.

In a series of tweets on July 15, popular Twitter commentator Nunya Bizniz presented multiple arguments supporting the significance of $30,000 for BTC/USD.

All roads lead to $30,000?

Despite rising fundamentals and ongoing adoption narratives, BTC price action has failed to reestablish a bullish trend.

Still 50% below recent all-time highs, Bitcoin is without direction, something which leads opinions to favor a bearish outcome of what has been eight weeks of sideways movement.

For Nunyaz Bizniz, there are a number of technical factors which are converging to support $30,000 as a focal level.

These include $30,000 being “approximately” the 1.618 Fibonacci extension level on the monthly chart versus the $3,100 lows in late 2018, as well as the 2021 yearly opening price.

Its psychological significance is compounded by it being a round number, and as others have noted, it fits into a longer-term trendline which places $64,500 as something of a mini-run to a blow-off top.

“Its approximately the 1.618 Fib Ext. Which in the two prior cycles was tested as support but was never closed below on the monthly chart,” accompanying comments read about the Fibonacci phenomenon.

“This time?”
BTC/USD chart comparison with Fibonacci extensions. Source: Nunya Bizniz/ Twitter

Research defends "Bitcoin supercycle"

The importance for Bitcoin not to break below $30,000 and fail to reclaim it compounds existing anxiety about a full-on BTC price breakdown.

Related: Bitcoin metric sees 'hell of a bounce' in move which historically heralds BTC price bottom

Amid the unease, some voices caution that it is only a desire to interpret events to push one’s own narrative, bullish or bearish, which is at play.

Bitcoin itself, meanwhile, is not as weak as price suggests, as fundamentals confirm.

“Regardless on your risk appetite, strategizing now is key, so as not to miss the next wave in this current Bitcoin supercycle,” Stack Funds concluded in its latest report released Thursday.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

Nunya Bizniz meanwhile included Tesla’s BTC stash as a potential sticking point. Below $30,000, the user calculated, the firm would start being underwater, which may trigger executive demands to sell more in order to reduce losses.

As Cointelegraph reported, investors are already back in the accumulation phase around $30,000.

Bitcoin price returns to ‘critical’ pivot zone as $33K stays untouched

Bulls are having problems reclaiming lost support levels, but $30,000 remains a solid foundation for Bitcoin's trading range.

Bitcoin (BTC) failed to crack $33,000 on July 14 as a bounce from multi-day lows delivered only modest progress.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC price: Fits and starts below $33,000

Data from Cointelegraph Markets Pro and TradingView tracked another day of ranging — albeit with increased volatility — for BTC/USD on Wednesday.

The pair briefly touched $31,750 overnight before a sharp rebound produced highs of $32,970. This meant that $33,000, once firm support, still remained out of reach.

For popular trader Michaël van de Poppe, this zone from $32,600 upwards was "critical to break" in order for Bitcoin to have a chance at hitting targets higher up in its trading range.

"Many altcoins making double bottom tests. Great," he added in his latest Twitter update.

At the time of writing, Bitcoin circled $32,800 following repeated attempts to crack $33,000. Buy and sell levels on Binance showed support firmly in place at $30,000, with a resistance band at $33,000 nonetheless slowly fading.

BTC/USD buy and sell levels (Binance) as of July 14. Source: Material Indicators/ Twitter

Strong hands quietly scoop up liquidity

Expectations were high on the day ahead of a much-publicized "Bitcoin bill" being presented before the government of Paraguay. While information about the legislation has been sketchy, optimists hope that the country will seek to follow El Salvador and make Bitcoin legal tender.

Beyond network fundamentals, there was little else for bulls to leverage at the time of writing, with accumulation by investors big and small yet to show itself in price action.

Related: Great buy? Bitcoin trades at record 59% below stock-to-flow BTC price model target

In fresh analysis, however, William Clemente suggested that there could be a "lag" in price response.

"Vice versa. Price can sometimes lag the accumulation flows. For example in January or September 2020 we had a bull div, not nearly this size though," he said in Twitter comments.

"Also to note: we had one in March 2020, but macro forces can obviously override this."
Bitcoin liquid supply ratio annotated chart. Source: William Clemente/ Twitter

Clemente highlighted a chart of Bitcoin's liquid supply ratio (LSR), a metric now signalling movement of BTC to those with little history of selling. 

"Nothing has changed, supply shock still in play," he said, referencing last year's block subsidy halving.

"LSR shows that the action of Bitcoins being reabsorbed by strong hands only continues to diverge more from price. Exchanges also down -21,829 BTC in the last 2 weeks; clear trend of accumulation in those flows as well."

Bitcoin price can only go up if $30K accumulation ‘reset’ continues — research

Investors who sold BTC above $30,000 on the way to all-time highs are now buying back in, Ecoinometrics reveals.

Bitcoin (BTC) is seeing a “reset” in investor behavior at $30,000 and the trend need only continue to spark a price rise.

According to on-chain monitoring resource Ecoinometrics on July 13, the only way is “up” for BTC/USD if hodlers continue accumulating coins.

"Intriguing" data points to fresh demand

Analyzing who bought coins since the start of the latest bull run in October 2020, Ecoinometrics showed that major change is afoot compared to last year.

At the start, it was smaller investors, or “small fish,” who were accumulating. This began when Bitcoin passed its previous all-time high of $20,000 and continued all the way up to the new peak of $64,500.

At $20,000, however, larger investors began selling, albeit not in sufficient quantities to end the bull run.

Whales, on the other hand, added selling pressure once BTC/USD hit $30,000 for the first time. The result, analysts say, was the tipping point at May’s highs.

“Apparently $30k is a key level that stopped the trend of coins accumulation by whales,” Ecoinmetrics commented.

The reason that selling pressure ultimately took over could lie with whale sentiment that Bitcoin was gaining “too much, too soon,” and that the market was thus deemed unsustainable.

Now that $30,000 has returned, cold feet are nowhere to be found — investors, both big and small, are buying again.

“Whales and small fish have started accumulating again while other categories have turned neutral,” the findings continue.

“If that interpretation is correct, then what we had with this correction is a reset. Would that trend of accumulation continue, there is only one direction Bitcoin can go and that’s up.”
Bitcoin whale hodling behavior chart. Source: Ecoinometrics/ Twitter

A glimmer of hopium

That perspective provides a refreshing counterargument to the bearish tone taken by many market commentators over the past few weeks.

Related: Bitcoin price will see breakout ‘during this week’ says trader with $38K target

Even the classic stock-to-flow price model has fielded concerns of invalidation, something its creator denies, while on-chain activity has been marked by low volumes and a lack of solid support above $30,000.

Calls for a major price move are not in short supply, meanwhile, with hopes for an upward move lingering despite sliding below $32,000 on Wednesday.

Bitcoin drops below ‘critical’ level for avoiding a return to $31K — gold rises on inflation data

The latest bearish streak sees $32,600 come and go, with selling pressure in evidence as BTC/USD sheds another 2.7%.

Bitcoin (BTC) fell to support which could determine a $30,000 retest on July 13 as bulls failed to make their case for fresh gains.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin bulls see $33,000 slip away

Data from Cointelegraph Markets Pro and TradingView showed another lackluster performance for BTC/USD on Tuesday, with local lows at $32,240 on Bitstamp.

Ranging above $33,000, viewed as the support level to hold as a springboard for bullish continuation, seemed shaky at best this week. Monday saw a brief slip below, with the rebound barely holding out for 18 hours.

At the time of writing, $32,500 formed a focus, with Bitcoin bouncing below levels one trader says are necessary to hold in order to prevent a return to closer to $31,000.

"The critical support that I've derived here is the area around $32,600-$32,900, which you preferably want to see sustain as support to avoid another test of the lows," Michaël van de Poppe explained in an update earlier on Tuesday.

With that area missing for now, bearish sentiment looked apt to prevail on lower timeframes.

Fellow trader Crypto Ed even tweeted charts comparing current price action with the build-up to Bitcoin's bear market capitulation event in December 2018, when it dropped to just $3,100.

That said, fundamentals continued to stabilize after seeing local bottoms of their own. The hash rate was above 91 exahashes per second on the day, while difficulty continued to avert a fresh record-breaking drop at this weekend's readjustment.

Prospective U.S. Bitcoin ETF gets banking support

Elsewhere, news that BNY Mellon would be providing banking services for a potential Bitcoin exchange-traded fund (ETF) from Grayscale failed to lift the mood.

Related: Strong Bitcoin accumulation spotted as BTC price refuses to fall below $30K

A United States ETF has yet to get the regulatory go-ahead, with a total of 1 currently under the microscope.

Even if it were to launch, however, opinions are mixed about an ETF's impact on Bitcoin if it were to operate in such a large market. 

Noting the impact of a U.S. ETF launch on gold in 2005, however, popular Twitter commentator Lark Davis hinted that the direction would be clear.  

"It essentially kick started a 7 year bull run," he summarized.

Tuesday's forthcoming release of the July consumer price index report, which focuses on inflation, buoyed stocks in contrast to crypto markets. Gold rose in tandem, with XAU/USD up 0.7% at $1,813.

BTC/USD (blue) vs. XAU/USD (orange) 1-hour line chart. Source: TradingView

Bitcoin dips below $33K as shorts spike, trader warns of ‘violent’ BTC price squeeze

It may even be boring for traders right now, but Bitcoin is preparing a rare event which will shake up price action definitively, argues trader John Wick.

Bitcoin (BTC) fell back below $33,000 support on July 12 as a familiar cocktail of low volumes and mounting shorts pressured price action. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Shorters fail to spark a Bitcoin rout

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it hit local lows of $32,880 on Bitstamp. 

Just like last week, a build-up of short positions on major exchange Bitfinex cost Bitcoin its range low, sending it back into its last zone of support before a $30,000 retest.

BTC/USD lost approximately 2.9% on the day, at the time of writing fluctuating around the $33,000 mark but staving off losses. 

Earlier, analysts had been more upbeat about the short-term prospects, forecasting an upside bounce this week which could see a target of $38,000.

"I'm getting to the stage that I'm quite done with this range on Bitcoin," an understandably weary Michaël van de Poppe summarized to Twitter followers.

BTC/USD shorts 1-day candle chart (Bitfinex). Source: TradingView

Trader: Get ready for "violent move" in Bitcoin

Those looking for more excitement are not being left out this week, even as ranging behavior continues.

Related: Countdown to Grayscale’s big BTC unlock: 5 things to watch in Bitcoin this week

The inspiration this time comes courtesy of well-known trader John Wick, who in a series of tweets on Monday eyed a rare signal in Bitcoin which historically demands a snap price move.

"We have now entered a zone of coiled up volatility indicated by the yellow shading," he commented alongside a chart describing an event called a "squeeze."

"VIOLENT move incoming & imminent. This tells you its time to start paying attention. It can resolve as a squeeze breakout or fakeout in the coming weeks." 

Squeezes are not an everyday occurrence. The previous two events involved a trip from $9,100 to recent all-time highs at $64,500, along with the subsequent correction to $30,000, Wick says.

While the exact timing and nature of the next squeeze, or even its direction, remain unknown, Wick's bias is to the upside. 

Contributing to his belief are both recent accumulation of BTC and the strength of $30,000 support. 

John Wick's BTC/USD "squeeze" scenarios. Source: John Wick/ Twitter

Bitcoin price will see breakout ‘during this week’ says trader with $38K target

Michaël van de Poppe believes that upside is in store for BTC/USD in the coming days despite nervousness about Grayscale.

Bitcoin (BTC) closed beneath a key moving average for the eighth week in a row this weekend, but one analyst is betting on an imminent breakout.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin balances breakout with Grayscale worries

Data from Cointelegraph Markets Pro and TradingView tracked Bitcoin as it reversed weekend gains on Monday after a disappointing weekly close.

The largest cryptocurrency had maintained its familiar trading range with $33,000 as support through Saturday and Sunday, but the new week dampened momentum.

For popular trader and analyst Rekt Capital, unless progress can be made, Bitcoin bulls may not have long to last before fresh losses hit.

“The blue 50-week EMA is still holding as support,” he summarized in a series of tweets.

“If this HL isn’t reclaimed as support soon, the sell-side pressure on the 50 WEMA may be too much for $BTC to hold here.”
BTC/USD 1-week candle chart with 50-week exponential moving average. Source: Rekt Capital/Twitter

Others were more upbeat. In his latest video update, fellow trader Michaël van de Poppe went as far as to call a BTC price breakout within days.

“I believe that Bitcoin is going to make a breakout to the upside,” he forecast.

“I would not be surprised if Bitcoin is going to trade around $38,000 during the days of this week.”

A look at buy and sell levels at major exchange Binance showed resistance forming at $35,000, with $30,000 remaining in place as overall support.

BTC/USD buy and sell levels (Binance) chart. Source: Material Indicators/Twitter

Altcoins lurk ahead of market decision

Van de Poppe added that this movement might be good for altcoins, which could start capitalizing on bullish sentiment. He had previously argued that altcoins would outperform the speed of Bitcoin’s gains in the coming months.

“I think the altcoins are close to a bottom too,” he said on Friday. 

Related: Top 5 cryptocurrencies to watch this week: BTC, LUNA, ATOM, CAKE, FTT

Most altcoins saw flat performance on the day, little changed over the past 24 hours.

With little by way of strong sentiment in either direction, as Cointelegraph reported, concerns remain that external factors may unduly influence price action across cryptocurrencies.

This comes in the form of the Grayscale unlocking series, which involves around 42,000 BTC over the month of July.

Countdown to Grayscale’s big BTC unlock: 5 things to watch in Bitcoin this week

A decisive month for GBTC market impact is set to begin, with BTC price action still "doing everything right" to preserve support.

Bitcoin (BTC) starts a new week in familiar territory — crucial support is back, but bulls have not yet got their breakout. Could that soon change?

After reclaiming $33,000 on Friday, BTC/USD has held on to the trading corridor it had been in before last week’s brief volatility. 

That involved a dip to $32,000 on the back of sudden short positions accumulating on exchange Bitfinex.

The impact was only temporary, however, and the weekend has seen highs of $34,600 on Bitstamp.

Cointelegraph present five factors to consider when eyeing what Bitcoin might do next.

Stocks boom as USD hits classic resistance

With stocks going upwards as usual, there seems to be little in terms of friction that could cause problems for cryptocurrency gains.

While analysts are increasingly warning about a comedown in the future, the mood in equities remains firmly buoyant this week.

“There does seem to be a complacency that Goldilocks is not only alive and well, but that it’s getting stronger by the day,” Simon Ballard, chief economist at First Abu Dhabi Bank, told Bloomberg.

“Unfortunately, it has to be recognized that going forward, the longer that rates remain where they are, the more that we look toward tapering, the more severe and acute could be the reaction.”

The U.S. dollar, however, could provide more clues.

Taking a look at the U.S. dollar currency index (DXY), which measures USD strength against a basket of 20 trading partner currencies, the picture shows some familiar resistance is back in play.

Late last week, one analyst argued that DXY needed to rise from its current 92.2 to around 94 in order to see major resistance kick in which would boost Bitcoin.

On Monday, however, DXY is still recovering from losses it incurred at the end of the week, also battling a zone which has kept it in check in the past.

Bitcoin’s inverse correlation to DXY has also been placed under the microscope recently, as BTC increasingly forges its own path within the macro environment.

U.S. dollar currency index (DXY) 1-day candle chart. Source: TradingView

Bitcoin price "doing all the right things"

Looking at the spot market, traders are bullish at the prospect of $33,000 returning and enduring after a brief bearish episode last week.

After "reaffirming" the level, trader and analyst Rekt Capital explained on Sunday, BTC/USD is back at the lower end of an established range.

"BTC is breaking back above the orange trendline," he said in a subsequent update alongside a chart showing the current landscape. 

"$BTC is doing all the right things to reclaim this trendline as support. Reclaim the trend line as support and that'll be great progress towards challenging for a breakout from this blue wedging structure."
BTC/USD scenario as of July 12. Source: Rekt Capital/ Twitter

Monday has continued the trend, with Bitcoin trading at around $34,350 at the time of writing.

"Bitcoin is trying to rally and close an 8th week in a row above 34k with a long wick down. Lots of demand still," fellow trader Scott Melker added.

Last week, targets of up to $39,000 were in for Bitcoin should bulls manage to attack $35,500 resistance and continue, something which in the event failed to occur.

Fundamentals sustain their comeback

If last week’s price action disappointed, under the hood, Bitcoin has been working on a more important turnaround.

Data from monitoring resources on Monday shows that both network difficulty and hash rate are stabilizing and that therefore, the worst of the recent mining turbulence could be firmly over.

After its record drop earlier in July, difficulty was previously on track to beat even its latest performance and shed another 28% or more.

In the intervening period, however, a recovery has started to take place. Now, the next difficulty adjustment should only see a 10% drop, should price action remain near current levels.

“Blocks coming in at a rapid phase - next difficulty adjustment is now estimated at ~ -7.5% but it seems to me like hash rate is coming back pretty quickly at the moment,” angel investor Klaus Lovgreen summarized on the day.

Bitcoin network difficulty chart. Source: Blockchain

The changes are testament to the power of the Bitcoin network to balance itself without any external assistance — regardless of the circumstances, difficulty adjusts to take into account any given eventuality.

The estimated hash rate remains only modestly above its recent lows of 83 exahashes per second (EH/s), but even here, stability and a slow return to the norm are visible.

As Cointelegraph reported, both metrics are expected to make fresh gains as mining power returns to Bitcoin after relocating out of China. The timeframe for this to happen, by contrast, is anyone’s guess.

Grayscale unlocks 40,000 BTC

An event that is on every Bitcoin market participant’s radar this month is the multiple unlockings of BTC at institutional giant Grayscale.

As Cointelegraph explained, the Grayscale Bitcoin Fund (GBTC) is due to release in excess of 40,000 BTC in the coming weeks, this having been subject to a six-month lock-up period.

Opinions differ about its market impact. Some are concerned that selling pressure will increase (only to then become practically zero after the unlockings are over), while others argue that spot markets will be broadly unaffected.

July 18 is of particular interest, with that day’s unlocking worth just over 16,000 BTC.

“When GBTC shares unlock and get sold, the GBTC Premium drops (share price drops relative to the BTC in the trust),” statistician Willy Woo commented last week.

“Investors now have more incentive to by GBTC shares rather than BTC, it diverts some of the buying pressure on BTC spot markets. This is bearish.”
GBTC unlocking schedule chart. Source: Bybt

Bullish price metric nears "launch zone"

In need of some reliable “hopium” for the week ahead? Bitcoin market analytics has the answer.

On Monday, attention was turning to a nifty indicator from on-chain data service CryptoQuant which has historically caught every major BTC price run in the past two years.

Dubbed the Taker Buy Sell Volume/Ratio, it tracks exchange data to produce as a guide for when to HODL and when is a good opportunity to take profit during a local market cycle.

Right now, the Ratio appears to be forecasting another BTC/USD surge, leading to a classic “take profit” point.

Analyst Cole Garner has even highlighted what to expect should history repeat itself. He noted, however, that the trigger phase — where the Ratio touches the upper green channel, has “not happened yet.”

“Buy signal incoming,” he nonetheless commented.

Bitcoin Taker Buy Sell Volume/Ratio annotated chart. Source: Cole Garner/ Twitter

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Great buy? Bitcoin trades at record 59% below stock-to-flow BTC price model target

Bitcoin has never been so far below where stock-to-flow predictions call for it to be.

Bitcoin (BTC) has never been as far below its target price as it is now, the stock-to-flow model shows this week.

In a tweet on July 10, Lex Moskovski, chief investment officer at Moskovski Capital, showed stock-to-flow flagging a historic moment in Bitcoin's twelve-year lifetime.

"Great buying opportunity"

With BTC/USD showing few signs of a genuine bullish recovery, the pair has been drifting ever further from the price that the stock-to-flow price model calculates it should have.

Stock-to-flow is arguably the most popular of the Bitcoin forecasters, and has historically tracked BTC price action with surprising accuracy, taking every anomaly into account to remain valid.

As Cointelegraph reported, however, current behavior is giving stock-to-flow a run for its money, and as of now, its target price comparatively has never been so far from reality.

"Negative Stock-To-Flow deflection is the highest it's ever been in the whole Bitcoin history," Moskovski commented.

"This is a great buying opportunity, if you're a believer in this model."
Bitcoin stock-to-flow deflection vs. BTC/USD chart. Source: Lex Moskovski/ Twitter

According to the Stock-to-Flow Multiple, BTC/USD should be trading at $82,703 on Saturday. At the time of writing, the actual spot price was $33,850 — 59% lower.

The model's creator, PlanB, has stuck by a seriously bullish view on Bitcoin for 2021, his latest price prediction calling for $135,000 by December as a "worst-case scenario."

The analyst is currently off the grid and not commenting on events, promising to return in August, which has a minimum price target of around $47,000.

Bitcoin stock-to-flow model as of July 10. Source: BuyBitcoinWorldwide.com

Stock-to-flow faces serious bear calls

PlanB has never ruled out stock-to-flow becoming invalidated at any point, and this could become a reality if the most bearish scenarios become reality.

Related: PlanB feeling ‘uneasy’ as 41% of his followers tip $100K BTC won’t happen this year

Among them is a $10,000 warning from Scott Minerd, the Guggenheim executive who this week claimed there was not "any reason" to buy Bitcoin under current conditions.

Other data points to an extended recovery period for Bitcoin fundamentals, while December could bring selling pressure once more, in line with historical precedent. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin metric sees ‘hell of a bounce’ in move which historically heralds BTC price bottom

The Puell Multiple bounces from its latest rare trip into the "buy" zone, and previously, BTC/USD has subsequently put in a macro bottom.

A classic Bitcoin (BTC) on-chain indicator has seen a “hell of a bounce” even as price action stays uncertain.

In a tweet on July 9, Philip Swift, creator of analytics resource Look Into Bitcoin, highlighted a dramatic change of course for the Puell Multiple.

Advancing Puell and hash rate "a good sign"

A deceptively simple metric, Puell tracks miner behavior with a view to understanding Bitcoin market extremes.

It has served extremely well as an indicator of when BTC price tops and bottoms are likely due, and in late June dipped into its green “buy” zone for only the fifth time in history.

Thanks in part to last weekend’s record difficulty readjustment, Swift says, Puell has now reversed upwards — and if it keeps going, higher prices should logically follow.

“Hell of a bounce out of the green zone this week for the Puell Multiple,” he summarized.

“Largely down to the difficulty adjustment and increase in hashrate. Will be a good sign if we see this and hashrate continue to climb quickly as bitcoin miners come back onboard.”

As Cointelegraph reported, miners returning to work after being displaced from China will create more competition and boost the Bitcoin hash rate, with difficulty climbing once again to account for the changes.

Estimates vary greatly as to when the turbulence impacting mining will be truly over.

Bitcoin Puell Multiple vs. BTC/USD chart. Source: LookIntoBitcoin.com

A reversal for Puell meanwhile could herald a definitive macro Bitcoin price floor. As trader and analyst Rekt Capital recently observed, dips into the green zone tend to be followed soon afterwards by a BTC/USD bottom.

The trip into the green itself occurs while Bitcoin is still preparing to put the bottom in, and does not completely line up with price behavior.

Playing down Grayscale unlocking

Bitcoin price action is seeing strength as the weekend progresses, something which could nonetheless result in a reversal in line with recent short-term trends. 

Related: BTC price regains $33k as Square confirms 'mainstream' Bitcoin wallet plans

The upcoming Grayscale unlocking events remain a topic of conversation, but opinions differ as to whether BTC/USD will be affected.

"This topic is the next big narrative," trader Michaël van de Poppe said in an update on Saturday, putting it alongside topics such as Bitcoin options expiries.

He added that negative bias is already active across crypto markets, which may give undue credence to the unlocking as a threat to price stability.

BTC price regains $33k as Square confirms ‘mainstream’ Bitcoin wallet plans

Bitcoin rapidly recovers above $33,000 support as Jack Dorsey says Square will create a Bitcoin hardware wallet and custody service.

Bitcoin (BTC) came back to life later on July 9 after a whale-induced price dip failed to hold the market down for much more than 24 hours.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin price action returns $33,000 support

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD jumping 2% in an hour on Friday, hitting local highs of $33,700 on Bitstamp.

The previous day had been marked by a trip lower and a test of $32,000 support, something which had come on the back of sudden short selling by an entity on Bitfinex.

With $33,000 support now back in play, however, traders were once again hopeful that existing short-term theories could still play out. 

"Bitcoin is still holding a critical level of support and potentially making a new higher low here," Michaël van de Poppe summarized in his latest update.

Van de Poppe had eyed a potential run to as high as $39,000 should Bitcoin break through the start of a resistance band at $35,500.

The rebound followed an announcement payment gateway Square, which confirmed that he would be developing a "mainstream" cryptocurrency hardware wallet.

"We're doing it," Twitter and Square CEO Jack Dorsey responded to a post from the latter's hardware lead, Jesse Dorogusker.

Dorogusker had also said that the plans would include a "service to make bitcoin custody more mainstream," with further details still outstanding.

Woo: "Whales are scooping"

As Cointelegraph reported, industry researchers had already flagged new bullish tendencies across on-chain metrics in the latter part of the week.

Related: Bitcoin price will likely shrug off $530M GBTC unlock in July — Analysis

These showed, among other things, record numbers of new Bitcoin network entities, these now topping 50,000 daily.

Whales, for their part, were also keen to scoop up the supply, a theory supported by popular statistician, Willy Woo.

"As price grinds sideways-bearish, coins are being scooped off the exchanges at a very bullish rate," he told Twitter followers on Thursday, alongside a chart of net flows from exchanges.

"PS. The latest sizing of withdrawals vs deposits are at local highs at levels that signal a bottom, whales are scooping."

Bitcoin exchange net flows vs. BTC/USD chart. Source: Willy Woo/ Twitter

New Bitcoin entities near all-time high as analyst heralds ‘positive whale activity’

Appetite for BTC is real at current levels, data shows, with bears needing to search hard for an on-chain metric that is not positive.

Bitcoin (BTC) on-chain activity is "dead" but on-chain indicators are overwhelmingly positive right now, says analyst William Clemente.

In the latest edition of Anthony Pompliano's weekly newsletters, Clemente highlighted multiple metrics showing no reason to be bearish about Bitcoin this month.

50,000 new Bitcoin entities every day

With BTC price action failing to impress, there is no shortage of bearish outlooks on Bitcoin, with even its best-known price models coming in for criticism.

If on-chain data is anything to go by, Clemente argues, the situation is far from bearish.

"The growth of new users is now reaching new all-time highs, over 50,000 new entities coming on-chain a day," he summarized.

Bitcoin entities net growth 14-day moving average chart. Source: William Clemente/ Glassnode

Those new entities could well be putting pressure on exchange reserves, which have resumed their downtrend — in the past week alone, almost 18,000 BTC has left exchange wallets.

"Retail has been buying heavily for weeks now, but we finally got the uptick in whales that we were waiting for," the newsletter continued.

"There were 17 new whales birthed on the blockchain this week, while at the same time the overall holdings of whales increase up by 65,429 BTC." 

As Cointelegraph reported, whales have already been in the news for other reasons this week, with one giant build-up of short positions on exchange Bitfinex instigating a price dip which lost BTC/USD important $33,000 support.

More broadly, by contrast, Clemente views current activity as an "uptick in positive whale activity."

Never mind slow block times

Elsewhere, cause for optimism comes from a diminishing premium on the Grayscale Bitcoin Trust (GBTC) despite the impending unlocking events.

Hash rate has likewise not returned to challenge recent lows of 83 exahashes per second (EH/s), leaving only transaction numbers to worry about.

Bitcoin 7-day average hash rate chart. Source: Blockchain

"Overall, on-chain activity is dead, shown by the number of Bitcoin transactions," Clemente acknowledged.

Even here, however, there is a caveat.

"If I had to build up a bear case and challenge my own opinion this is one of the charts I would use; however, a portion of this drawdown is likely from people using the Bitcoin network less due to slower block times," he reasoned.

Bitcoin transaction numbers 14-day moving average chart. Source: William Clemente/ Glassnode

Dogecoin gains 8% after Elon Musk says DOGE payments compete with Bitcoin, Ethereum

The billionaire's latest public praise of Dogecoin yields few returns but a lot of mockery.

Dogecoin (DOGE) may need a new marketing strategy after the latest publicity stunt from Elon Musk moved its price by less than 8%.

In a tweet on July 8, "Dogefather" Musk argued that Dogecoin could do a better job at payments than Bitcoin (BTC) or Ethereum (ETH).

Musk: BTC, ETH "slow" with high fees

The latest in a long line of plugs, the Tesla and SpaceX CEO was responding to crypto YouTuber Matt Wallace, who revealed excitement an upcoming protocol upgrade. 

"BTC & ETH are pursuing a multilayer transaction system, but base layer transaction rate is slow & transaction cost is high," Musk claimed.

"There is merit imo to Doge maximizing base layer transaction rate & minimizing transaction cost with exchanges acting as the de facto secondary layer."

The proposal envisages Dogecoin having on-chain transactions as the norm, with exchanges essentially fulfilling the role that the Lightning Network does on Bitcoin.

Exchanges currently process large numbers of transactions internally without touching the blockchains of respective coins. These are then synced as necessary, resulting in fewer on-chain transactions and therefore fewer fees and less strain on the relevant blockchain.

Responding, Twitter users took issue with the concept that exchanges would be happy to fulfill such a role. 

Employing centralized trusted third parties as the backbone of a payment network, others hinted, was vastly inferior to the Lightning Network solution.

"Elon Musk and Jeff Bezos are pursuing a multi planetary space transport, but development is slow & cost is high," podcast host Peter McCormack mockingly replied.

"There is merit imo to building rockets with spit and cardboard, increasing build speed and minimising cost."

DOGE price limps 70% below peak

For all the attention, meanwhile, DOGE/USD once again moved only slightly, trading up 7.6% at just under $0.23 at the time of writing.

Related: Elon Musk's latest attempt to pump Dogecoin fails miserably

Against its all-time highs from May 8, when Musk went on Saturday Night Live to bring Dogecoin to a wider audience, the pair is still down 70%.

DOGE/USD 1-hour candle chart (Bittrex). Source: TradingView

Musk has inadverently diverted attention from DOGE with his own social media campaigns.

Various tweets have spawned new dog meme-themed cryptocurrencies — a post about Musk adopting a shiba inu named "Flocki" quickly saw the emergence of a raft of shiba inu-related tokens.

Prior to that, SHIBA INU (SHIB) itself competed with DOGE as retail investors piled into the meme trades.