Bitcoin’s price saw a significant upswing, spurred on by Ripple’s victory in its legal battle with the SEC. The price of BTC even approached the $32K threshold, but a decrease in buying pressure led to a substantial decline. Bitcoin’s bullish momentum suffered another blow recently as the price dipped below the $31K mark, with the cryptocurrency currently struggling to maintain its momentum. This development has left investors and market watchers speculating about the next support level for Bitcoin’s price.
Bitcoin Bulls Need To Work Harder
Bitcoin’s price movements are reverting to solidify support following the swift gains experienced the previous day. Bitcoin’s price responded immediately to the news that a U.S. judge had endorsed the notion that the altcoin XRP does not qualify as a security.
Markets interpreted this as a setback for the Securities and Exchange Commission (SEC), which has been attempting to categorize altcoins as securities across the board in recent months.
Bitcoin’s price has declined below $31K, fuelling bearish bets among traders. The inability to hold the momentum at $31K clarifies why bullish traders chose to lock their profits.
The aggregate open interest for Bitcoin options on Deribit for July 15 indicates a 1.16 put-to-call ratio, highlighting the difference in open interest between the $339 million call (buy) options and the $398 million put (sell) options. The maximum pain point is set at $31,000, with sellers heavily wagering on a drop to $30K by tomorrow.
Bitcoin’s liquidation chart reveals that bullish traders exited their positions when Bitcoin fell below the $31K mark. This led to a surge in long liquidation to $30 million, which exerted downward pressure on the price chart and reinforced the bearish prediction of a drop to $30K.
What’s Next For BTC Price?
Bitcoin managed to break and settle above the resistance level of $31,000, but the bulls are finding it challenging to hold this momentum. This indicates that the bears are still in the game, selling off at higher levels. As of writing, BTC price trades at $30,220, declining over 4% in the last 24 hours.
While the ascending moving averages suggest a buyer’s market, the relative strength index (RSI) is displaying a bearish divergence with its downtrend, hinting at a possible weakening of the bullish momentum.
The bears will attempt to drag the price back beneath the $30K level. If successful, the BTC price could descend to the crucial level of $29,500. This is a crucial level to monitor. A rebound from this point would imply that the market sentiment remains positive and traders are purchasing during price dips. A surge above $32,500 could pave the way for a potential climb to $40,000.
Conversely, a break and closure below the $29,500 will intensify selling pressure. For the bears to gain control in the short term, they would need to send the price to $27K.
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