Bitcoin

Bitcoin ‘Burj Khalifa’ fakeout repeats as BTC price spikes to $31K

Bitcoin (BTC) staged a fresh breakout attempt into July 11 as the battle for yearly highs stayed 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 passing $31,000 before the July 10 daily close.

In a copycat move, seemingly with last week’s snap higher for inspiration, BTC/USD managed to approach resistance before momentum waned, subsequently falling back over $800.

Some form of continuation did set in thereafter, and at the time of writing, Bitcoin traded around $30,500.

For Michaël van de Poppe, founder and CEO of trading firm Eight, the overnight move had all the hallmarks of a “leverage crunch.”

“The markets just continues chopping,” he told Twitter followers in his latest update.

“Bitcoin had a leverage crunch in the past 24 hours, taking out all the highs & going back to the start in one go. The only difference between now and Thursday? No new lows have been made. $30,200 supporting. Don’t get chopped out!”

BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter

Popular trader Crypto Daan compared recent behavior with the “Bart Simpson” style chart features from before, where BTC price would spike to a plateau and hold there, only to retrace the full run later. Currently, however, Bart has been replaced with a structure reminiscent of the Burj Khalifa.

Meanwhile, trader and analyst Rekt Capital flagged $30,600 as the level to flip.

“BTC is now pressing past the ~$30600 Ascending Triangle resistance. But it’s key to note that $BTC has pressed past this level before only to form an upside wick,” he said during the overnight run to $31,000.

“So BTC needs to turn the ~$30600 into support in the coming days for BTC to confirm its breakout.”

BTC/USD annotated chart. Source: Rekt Capital/Twitter

“Re-accumulation” as usual

Bitcoin nonetheless remained in a familiar range in play for multiple weeks.

Related: CPI meets low BTC supply — 5 things to know in Bitcoin this week

In the latest edition of its weekly newsletter, The Week On-Chain, analytics firm Glassnode suggested that this was characteristic of Bitcoin price cycles.

“Bitcoin data often displays strangely repetitive patterns cycle after cycle. In the 2021-22 cycle, the $30k price level formed somewhat of a ‘mid-point,’ and was tested several times both from above and below,” it stated.

“A very similar level was observed in 2013-16 around the $425 level, and again in 2018-19 at approximately $6.5k.“

Bitcoin cycle mid-point comparison chart (screenshot). Source: Glassnode

Glassnode added that “re-accumulation” was the tag that best fits the nature of the current BTC price action.

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Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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