Bitcoin sellers in ‘disbelief’ or BTC price wouldn’t still be at $41K — Analyst

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Bitcoin sellers in 'disbelief' or BTC price wouldn't still be at $41K — Analyst

Bitcoin (BTC) closed July above $41,000 in a “bullish engulfing” candle that dramatically upends its earlier downtrend.

In a tweet on Aug. 1, investor and entrepreneur Alistair Milne joined many celebrating a traditional return to type for BTC price motion.

Bitcoin refuses to flip bearish

After seeing three straight month-to-month pink candles in a row, BTC/USD held onto late positive factors to put up a month-to-month shut that few had anticipated.

Regardless of the dip to $29,000, bears failed to remain in the driving seat as July drew to an in depth as resistance ranges fell and sentiment improved. 

“Bullish engulfing on the monthly chart for Bitcoin,” Milne summarized. 

A bullish engulfing pattern is a chart pattern that forms when a small red candle is followed by a large green candle, i.e. July, the body of which completely covers or engulfs the body of the previous candle (June).

BTC/USD 1-month candle chart (Bitstamp). Source: TradingView

The move up — and its staying power — have been so surprising that even seasoned hodlers appear confused about what to do next.

On-chain data shows that some long-term holders (LTHs) are in fact selling as BTC/USD rises, something that analyst Lex Moskovski believes corresponds to the “disbelief” stage of a traditional market cycle.

Moskovski highlighted the long-term holder spent output revenue ratio indicator (LTH-SOPR), which this weekend hit its lowest ranges in 2021.

SOPR seems to be at the worth of cash moved in a selected time interval to get an impression of profitability of cash being offered. A downtrend in direction of the impartial 1 worth, host Glassnode explains, means that profitability among the many cash in query is low.

“Some long-term bitcoin holders are selling into this bounce with minimal profit as indicated by LTH-SOPR hitting this year’s low for two days straight,” Moskovski commented.

“This is one of the reasons we’re still at 41k. Disbelief.”

Bitcoin LTH-SOPR annotated chart. Source: Lex Moskovski/ Twitter

“Like clockwork”

Bulls meanwhile continue to look for triggers that could send BTC/USD past $42,000 resistance for good, this having seen two tests in the past 24 hours.

Related: Bitcoin ‘supercycle’ sets up Q4 BTC price top as illiquid supply hits all-time high

Past there, as Cointelegraph noted, little lies in the way in which till $45,000 and $47,000.

Equally enthusiastic for upside on Saturday was PlanB, the creator of the stock-to-flow price mannequin household, who described Bitcoin’s July shut as being a restoration “like clockwork.”

Inventory-to-flow, whereas at the moment demanding a Bitcoin price of almost $100,000, stays legitimate, with PlanB giving a minimum August shut requirement of $47,000.