On July 21, 2021 Bitcoin rebounded after going full circle in 2021 to nearly, but not quite, hit its January 1. BTC bulls could celebrate a modest victory on July 21 after record bids kept the BTC/USD pair its 2021 opening price.
$31K Back In Context For Bitcoin
Data acquired from TradingView showed the biggest crypto avoiding a trip lower than $29,000 in the last 24 hours. After breaking below the $30,000 support, worries quickly mounted that Bitcoin would exceed even its May lows and continue in its free fall towards $24,000 and below.
All that did not eventually come to pass since the “biggest bid ever” kept bears working. With that in mind, Bitcoin bounced back above $30,000 at the time of publication on July 21, but whether or not the bottom is in was a major topic of debate.
For one analyst, the fact that BTC had not matched its May levels left the door open for a retest. In general, behavior both then and now conformed to a general trading pattern that had not yet broken down. He summarized before the rebound:
“Bitcoin is still acting inside this range of wicks. Didn’t take liquidity fully as there are still some wicks to take the liquidity from. However, the daily candle on Ethereum is interesting, as that one is in support. Let’s see whether we lose this and reach $26K next.”
He said that Bitcoin was quite cheap while trading at the sub-$30,000 levels. Another trader by the name of Crypto Ed shared his sense of foreboding, insisting that it was not yet time for a true recovery.
EW labelling was spot on so far.
Need to see how this bounce unfolds but should be a corrective bounce before more doom.
Always expect the unexpected so we determined levels where this is invalidated and we turn bull. Just not yet. pic.twitter.com/RnhlPidjb4
— Crypto_Ed_NL (@Crypto_Ed_NL) July 21, 2021
Orderbook data indicated that there is a major resistance building at $31,000 on the day, placing a hiccup in the way of bulls who propelled the market 5.5% higher to a local high above $30,900. Support has formed at $29,000 and it remained in place despite the prior test.
Altcoins Stage A Major Comeback
The altcoin markets welcomed the relief rally in Bitcoin with Ether (ETH) gaining almost 6% within hours. In the past, the biggest altcoin had lost a trend of higher lows that had characterized it throughout the first half of the year.
Gains of nearly 20% meanwhile were recorded across the top fifty cryptos by market cap, underscoring the altcoins’ current sensitivity to Bitcoin’s movements. The total crypto market cap surged back above $1.25 trillion.