The price of Bitcoin is consolidating between the $65K-66K range a few days after the coin almost touched $70,000 amid a bullish sentiment across the broader cryptocurrency market.
Bitcoin was trading at $66,323 on July 31 at 02:40 a.m. EST after posting a 0.4% decline in 24 hours.
Bitcoin Price Holds $66K
In the last 24 hours, Bitcoin’s price volatility has withered down significantly, with the price moving between the $65,488 and $66,970 range.
After recording a drastic drop from above $69,000 earlier this week, the price seems to have entered a consolidation phase.
A look at Bitcoin’s four-hour chart shows a healthy price recovery. The Relative Strength Index (RSI) has bounced from the oversold region to around 52, showing an influx of buyers in the market.
The RSI trendline is also tipping north, indicating an upward momentum, and the ability of BTC to continue with the positive price action and create higher highs.
The movement of price against the Bollinger bands further shows some bullish action. After the price bounced from the lower Bollinger band to the upper band, it has since dropped to the middle 20-day Simple Moving Average (SMA), showing that the bullish sentiment might be waning.
According to trader @Ali_Charts on X, Bitcoin could be in for a major bull run if the price crosses above $66,300. The TD Sequential presents a buy signal, and if traders step up to take a buy position, BTC could head higher.
Trader @DaanCrypto on X also noted that Bitcoin had created lower highs within proximity to each other since April. He predicts that once BTC collects liquidity at $70K, and then $72K, the next target will be a fresh all-time high.
Selling Activity Could Affect Price Action
While analysts predict bullish action, there is much selling activity around Bitcoin that could hinder further price gains.
On July 29, the US government moved $2 billion worth of Bitcoin despite former US President Donald Trump saying he planned to create a Bitcoin stockpile. The transfer created concerns that selling activity could affect BTC’s price action as was seen when the German government started selling Bitcoin last month.
Besides the government wallets holding Bitcoin, the Mt.Gox Rehabilitation Trustee is also making plans to distribute more coins to exchange holders.
According to Spot On Chain, the Mt.Gox exchange moved 45,522 BTC, valued at over $3.15 billion to three new wallet addresses on July 31.
Since July 5, Mt.Gox has transferred $3.88 billion worth of Bitcoin to different exchanges including Kraken, and Bitstamp to rehabilitate the exchange’s creditors after the devastating 2014 hack.
