Bitcoin Price Dropped Below $37K. Analysts Fear That the Trend Turned Around
Just hours after surpassing the $40,500 level, the Bitcoin rate fell below $37,000. Because of this, analysts began to fear that the market’s mood had changed.
On July 26, for the first time in more than six weeks, Bitcoin surpassed $40,000. On Binance, the price soared to $48,110, after which, due to the short squeeze, short positions for $500 million were closed in a few minutes.
BTC rose to an intraday high of $40,581 on July 26 and then bounced back to $37,500, according to TradingView data.
Eli Le Rest, a partner at digital asset management firm ExoAlpha, said that after Bitcoin’s price surged above $35,000 on July 25, more than a billion short positions worth over a billion dollars were liquidated in 24 hours. Most of them were eliminated in less than an hour.
Le Rest believes that the current market position can hold out until the end of the week. But for this, Bitcoin must break out of the range of 30-40 thousand dollars. Exceeding the $40,000 level will be a clear signal that the bulls have asserted dominance on the market.
And if the trend of Bitcoin’s movement keeps its direction, the rate may reach $100,000 by the end of the year.
But don’t be too optimistic; it’s better to be careful now. Several bear threats are still significant, according to Glassnode. Bitcoin’s price rally on July 26 is associated with a general short squeeze. And financing rates continue to trade at negative levels, despite the rising prices.
Thanks to the increase in Bitcoin’s rate, the price of many altcoins also went up. Ethereum added 11% to $2,433, Dogecoin +7% to $0.208.