Bitcoin reclaims US$32k level, but some remain cautious of ‘dead cat bounce’
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And just like that, sentiment in the crypto-space has flipped again.
After days of predictions of a massive drop if Bitcoin lost the US$30,000 level, the original cryptocurrency surged instead yesterday, a day after trading as low as US$29,500.
At 11.12am AEST, BTC was trading at US$32,019, up 8.1 per cent from yesterday.
Ethereum was changing hands for US$1,979, up 11.7 per cent.
Thirty eight other top 100 altcoins had posted double-digit gains, with gaming token Axie Infinity up a whopping 50 per cent to hit a five-day high of US$22.94. Telcoin had gained 45 per cent and Polygon, 30 per cent. The only top 100 coin to fall significantly was iFinex’s Leo token.
Some were ready to declare the bull season was back on.
Let’s take a look at the inverse chart (I also flipped the color of the candles to help).
It looks ready to fall off a cliff.
No way you could look at this and think it was going to break higher. As soon as that diagonal gives (& it will), it’s over.
Bull szn. pic.twitter.com/w1GikLr0Nz
— K A L E O (@CryptoKaleo) July 22, 2021
Don’t know who needs to hear this but BTC is going to new all-time highs this year and bears will be in disbelief the whole way up.
— Will Clemente (@WClementeIII) July 21, 2021
Others were more cautious, saying the pump hadn’t come with significant volume and it could be a dead cat bounce.
“There is an opportunity for the bulls to reclaim the throne here, but they still have a ways to go,” wrote analyst Bitcoin Charts.
“Until we start creating higher highs on the 4H chart, it’s reasonable to expect continued downside. … the trend hasn’t changed, so the bears are still in control. But this *could* be a good start for the bulls.”