Analyses

Apple Rumored to Have Bought Over $2B Worth of BTC – Analysis, 19 July

Abstract Tunnel Modern Building Technical Analysis Bitvalex 19 July 2021

In the first half of last week, rumors about Apple buying Bitcoins worth over $2 billion spread across the crypto-related social media platforms.

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Source: Twitter

Many cryptocurrency enthusiasts expect such kind of news (about big players entering the market) to revert the price decline of Bitcoin and resume the uptrend.

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Source: Twitter

However, these rumors have remained unconfirmed so far, and the crypto market has remained under bearish pressure:

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Source: Twitter

Nevertheless, the Bitcoin fundamentals are starting to improve, and it seems that internal factors will drive the potential uptrend renewal. According to a recently published newsletter by Glassnode, Bitcoin miners are returning to the so-called ‘accumulation phase.’ That means that they are starting to accumulate BTC to sell it later at higher levels:

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Source: Glassnode

Also, the insight by Glassnode claims that the outflows from the crypto exchanges are intensifying. A signal that the retail investors are buying crypto with the primary purpose to hodl it:

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Source: Glassnode

And, although the Bitcoin price fundamentals have started to improve, the market has recorded another week of consolidation. Now, the Monday market starts with some mixed price dynamics. According to Coin360.com, one Bitcoin costs €26,990.46 (+0.35%), one Ethereum – €1,622.23 (-2.31%), one DOGE – €0.1510 (-5.28%), and one UNI – €14.19 (+0.35%): 

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Source: Coin360.com (Daily crypto market performance)

Now let us look at the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.

BTC/EUR

In the daily chart (1D), the price of Bitcoin continues to consolidate between the 360-day Moving Average (MA 360) and 30-day Moving Average (MA 30): 

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MA 360 is solid support for the price of BTC, and it will be very hard for the bears to push the price below the moving average. However, MA 30 puts pressure on Bitcoin and does limit the price to increase.

The crypto bulls should keep an eye on the 1-hour chart (1H), where BTC/EUR has formed a Descending channel:

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In our view, as long as the price of Bitcoin remains within the channel, it is better to abstain from opening long positions. However, if BTC/EUR exits the channel upwards, some of the most aggressive traders will open long positions. They will expect the price to rebound from the lower line of the consolidation range in the daily chart.

ETH/EUR

This past week, ETH/EUR could not return to the Ascending channel in the daily chart (1D):

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As can be seen from the chart, the Ethereum remains below the lower line of the channel. That is why the ETH bulls have to be very cautious.

It is worth keeping an eye on the 4-hour chart (1H), where ETH/EUR has formed a Descending Wedge:

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According to the Technical Analysis theory, Descending Wedge is a trend continuation pattern. That is why it is likely that sooner or later, the price chart will exit the wedge in the upward direction and will resume the uptrend. Nevertheless, as long as ETH/EUR remains within the wedge, it is preferable to stay away from the market.

DOGE/EUR

In the weekly chart (1W) of DOGE/EUR, the sequence of small bearish candlesticks with descending local highs continues:

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This candlestick formation confirms the bearish sentiment. That is why the bulls have to be very careful.

As we already mentioned in our previous analysis, the bullish sentiment will return only if the price of Dogecoin breaks through the resistance line in the 4-hour time frame (4H):

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In our view, as long as the price of Dogecoin continues to slide along the resistance line, it would be better to postpone any long trades.

UNI/EUR

In the weekly chart (1W), UNI/EUR has formed a solid bearish candlestick that has covered the bodies of the candlestick from the Bullish Engulfing:

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We consider this as an indicator revoking the small bullish signal from the Bullish Engulfing.

Now, we will focus on the resistance line in the daily time frame:

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Only if the price of Uniswap surpasses the resistance line, we will try to spot a buy signal to enter the market and catch a price rebound. For now, we will monitor the price behavior of the cryptocurrency.

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The analysis is purely informational and does not constitute investment, financial, trading, or any other sort of advice and you should not treat any of Bitvalex's content as such. Bitvalex does not recommend that any cryptocurrency should be bought, sold, or held by you. You are solely responsible to conduct your own due diligence and consult an advisor before making any investment decisions.


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