Bitcoin (BTC) price hit three-day lows at the weekly close on July 10 when $21,000 gave way as short-term support.
Traders see bullish divergences in the markets
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD gave back some of its gains from earlier in the week, though still trying to post its best weekly gains since March.
The pair was around $20,850. At the time of writing this article, some $1,600 below the weekly high at the 200-week moving average.
Despite not having followed through with the breakup, Bitcoin price gave some commentators reason to be cautiously optimistic ahead of the new week.
“Markets are showing bullish divergences on the upper timeframe and the sentiment is the same as at a funeral,” said Cointelegraph contributor Michaël van de Poppe.
“The recipe for a reversal is there, and it can accelerate pretty quickly. Invest when no one is interested. Sell when everyone is interested.”
Meanwhile, popular Crypto trader Tony entertained the idea of a new sideways phase coming before a deeper drop, something he imagined would “drive everyone crazy”.
$BTC / $USD – Playing with ideas
If we start to reject harder and fail to reclaim the range high, we may start to see something like this shape up. Would drive everyone crazy i can imagine pic.twitter.com/wwoa8vjMRv
— Crypto Tony (@CryptoTony__) July 10, 2022
If we start rejecting harder and fail to get the top of the range back, we could start to see something like that. I imagine that would drive everyone crazy.
Macroeconomic conditions remained uncertainwith the turmoil in Sri Lanka adding to a sense of nervousness engendered by the common global issue of energy, food and financial crisis.
All this crazy shit happening in the world, I just can’t see how anyone can be macro bullish
we need new buyers and retail, without that there is no continuation… only chop
all pumps are an opportunity to exit and buy lower$BTC pic.twitter.com/npAKi1L8uw
— Ninja (@Ninjascalp) July 10, 2022
With all this craziness going on in the world, I can’t see how anyone can be macro bullish.
we need new buyers and retailers, without that there is no continuation… just chopped
all pumps are an opportunity to go out and buy $BTC lower
Attention was focused on the US dollar index (DXY), which had ended the week back in support after shooting to new highs not seen in twenty years.
Risk Reserve reaches historic lows
In the meantime, those looking for a golden buying opportunity in BTC, obtained a new key signal from the Risk Reserve indicator.
What he pointed commentator Murad over the weekend, Reserve Risk, which shows the sentiment of long-term holders, reached its lowest levels in history in July prices.
“Either this indicator is not working or we are in the long-term bottom zone“he said in part of the Twitter comments alongside data from on-chain analytics firm Glassnode.
“I prefer the second one”.
The Risk Reserveas Cointelegraph reported, has been rediscovering its green “buy” zone since March, this corresponds to optimal opportunities to invest with “outsized returns” as a result.
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