The Bitcoin market recorded a minor 0.67% price gain in the last 24 hours, amid a brief return to the $118,000 price territory. This modest price increase forms part of a rebound observed over the previous 48 hours, following a significant 4% price correction earlier last week. Looking ahead to the new week, renowned market analyst with X username KillaXBT has identified two potential price development scenarios for the premier cryptocurrency. Related Reading: Bitcoin Price Holds Above $115,000 — Here’s Why This Level Is Significant Bitcoin Sees Bounce From Key Demand Zone, But What’s Next? In an X post on July 26, KillaXBT provides an in-depth technical analysis of the Bitcoin market to map out the asset’s potential price trajectory in this new week. The popular market expert duly notes that Bitcoin experienced a price bounce after dipping into a key demand zone around $115,000, which they also described as an ideal long entry region. As earlier stated, the crypto market leader has since climbed to $118,000 following this price rebound. However, KillaXBT notes there is an established CME Gap around $117,071, which is likely to serve as a price magnet in the short term. For context, CME gaps are price gaps on the Chicago Mercantile Exchange (CME) Bitcoin futures chart that occur when Bitcoin’s price moves significantly on the spot market when CME markets are closed, typically over the weekend. In view of next week, KillaXBT explains scenario 1 in which the Bitcoin market opens on a bullish note. In this case, the analyst states investors should expect Bitcoin to eventually form a higher low, ideally through a sweep of liquidity around the $116,000 area. However, if Bitcoin bulls can effectively hold this price pocket, it would trigger fresh long setups with stop losses tucked below the prior week’s low. In scenario 2, KillaXBT paints a more aggressive situation in which Bitcoin performs a double sweep of last week’s wick low around $114,800, thereby effecting a ruthless liquidity grab before an upward reversal. However, the market expert favours the reality of scenario 1, following the earlier liquidity grab with the price dip to $115,000. Related Reading: XRP Produces Successful $3 Support Retest – But What Next? The Invalidation Risk Regardless of which scenario, KillaXBT has highlighted certain developments that could neutralize the prospects of a bullish reversal. In particular, the analyst explains that failure for the price to hold above the recent wick lows following a retest would force Bitcoin prices to deeper imbalance zones between $112,000 – $113,800. At the time of writing, Bitcoin trades at $117,900, reflecting a 0.21% gain in the last seven days. Featured image from Pexels, chart from Tradingview
While Bitcoin (BTC) has remained range-bound – trading between $100,000 and $110,000 for about a month – both short and long positions have been building within this range, with short positions rising at a faster pace. Bitcoin Long Positions Slightly Ahead But Shorts Catching Up After reaching a new all-time high (ATH) of $111,814 last month, BTC has consolidated within the $100,000–$110,000 range for nearly a month, offering little clarity on its next directional move. Related Reading: Bitcoin Holds Strong Despite Israel-Iran Tensions – Weekly Resistance Begins To Crack According to a new CryptoQuant Quicktake post by contributor BorisVest, fresh data from Binance crypto exchange suggests that long positions currently hold a slight edge in this range. Historical data reveals a pattern – when short positions rise, short squeezes tend to follow. Similarly, a buildup in long positions has often led to long squeezes. A decisive breakout from either end of the current range will likely determine Bitcoin’s next major move. That said, Binance data indicates that while long positions are marginally ahead, the ratio of longs to shorts remains relatively balanced. The funding rate hovering near neutral levels supports this view, reflecting a closely contested standoff between bulls and bears. However, such balance usually signals uncertainty in the market. While long interest has stabilized, short positions continue to climb – likely driven by expectations of further downside amid escalating geopolitical tensions in the Middle East. BorisVest noted: This shows that most market participants believe the rally may not continue. When Bitcoin’s price starts to fall, and funding rates turn negative, it means shorts are piling in quickly. All of this points to this range being a highly sensitive zone. He further noted that with most traders leaning toward short positions, the setup could be ripe for a surprise move in the opposite direction – possibly fuelled by quiet accumulation from larger market participants. Is BTC Preparing For A Big Move? Despite BTC trading within the $100,000 – $110,000 range for the better part of the previous month, several analysts posit that the flagship cryptocurrency is preparing for a major move in the coming weeks. Related Reading: Bitcoin Consolidates as Realized Profits Stay Low – No Signs Of Major Sell-Off Yet Most analysts are leaning toward a move to the upside. For instance, crypto trader Josh Olszewics remarked that if liquidity holds, then BTC may eye a move toward the $150,000 level. From a technical standpoint, the outlook is encouraging. Crypto analyst Mister Crypto recently pointed out that BTC is forming a bullish inverse head & shoulders pattern on the 3-day chart. However, latest on-chain data shows that Bitcoin Network Value to Transactions (NVT) Golden Cross recently moved into an overpriced zone, warranting caution. At press time, BTC trades at $105,940, up 1.1% in the past 24 hours. Featured image from Unsplash, charts from CryptoQuant and TradingView.com
Bitcoin may be struggling to initiate a notable surge to revisit its current all-time high of $108,000, triggering speculations about its short-term outlook. Despite the waning price performances, many investors remain optimistic about BTC’s prospects as indicated by key interest indicators. Key Interest Indicator Signals Optimistic Outlook With market optimism building, Bitcoin has seen a […]