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Bitcoin price hits $24K, but analysts say on-chain data points to an ‘inevitable’ pullback

Cryptocurrency investors are Bitcoin (BTC),ether(ETH) And on July 20th, a handful of altcoins gathered Alongside traditional market profits..

Data from Cointelegraph Markets Pro When TradingView Shows that Bitcoin’s bullish noon rally has succeeded in raising the top crypto to a high of $ 24,281 per day. This triggered a new round of bullish declarations on CryptoTwitter.

BTC / USDT 1-day chart. Source: TradingView

While The weekly rise helped boost investor sentimentSome analysts warn traders not to go too far ahead, as the market still provides some notable warning signs.

Prepare for the inevitable pullback

Market analyst Caleb Franzen said Bitcoin’s above $ 24,000 officially confirmed a breakout from its previous trading range of $ 18,000 to $ 22,500. Post The following chart focuses on the problems the market is currently facing.

BTC / USD 1-day chart. Source: Twitter

Franzen said,

“Anyway, my belief is that the next pullback will be a major test in this bear market. Will the buyer actively intervene in the pullback or surrender?

Whale purse remains dormant

According to chain research firm Jarvis Labs, one reason the current rally is wary of its ability to sustain itself is the lack of activity in whale purses.

Bitcoin divergence chart. Source: Jarvis Labs

The red and orange dots on the BTC divergence chart above represent the purchase activity of large and small whale wallets at various times. There has been little activity from whales in the last few months, as Bitcoin is on the decline, as shown in the box highlighted in red.

Data from Jarvis Labs also show that large companies have not yet returned to active purchases. The graph below shows changes in BTC whale holdings.

BTC whale ownership change. Source: Jarvis Labs

Jarvis Lab said,

“I want to see this colored dot pattern start moving up and down. If it does, it’s a positive sign that any rally could have a lot of momentum behind it.”

Based on the confirmed trends, Jarvis Labs said, “It’s hard to get too excited about a rally that expands beyond about $ 28,000 in liquidity,” instead, “for now, the low $ 25,000 band is the most. It seems likely. “

Related: Bitcoin could reach $ 120,000 in 2023, with BTC prices rising 25% in a week, according to traders.

High time frame trends remain bearish

Last week’s sentiment turnaround was acknowledged by market analyst and cryptocurrency swing trader il Capo. “The low timeframe trend is bullish and there is no doubt about it,” he said.

But before jumping into this rally, the crypto Il Capo also Post The following chart warns that “the trend in high timeframes is still bearish, which is another low high.”

BTC / USD 12-hour chart. Source: Twitter

Crypto’s Il Capo said,

“Ltf [low time frame] Bearish confirmation is under $ 22K. The main goal remains $ 15.8K- $ 16.2K. “

The overall market capitalization of cryptocurrencies is currently $ 1.062 trillion and Bitcoin’s dominance is 42.7%.

The views and opinions expressed here are those of the author and do not necessarily reflect the views of All investment and transaction movements carry risks. When making a decision, you need to do your own research.