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Bitcoin Breakout From Sideways Churn Targets Key Hurdle

Bitcoin price is up nearly 30% from its June lows, but signs of a bigger advance toward key resistance at $25,000 are beginning to emerge.

Bitcoin price is up nearly 30% from its June lows, but signs of a bigger advance toward key resistance at $25,000 are beginning to emerge. After volatility narrows, price tags the so-called upper Bollinger Band, which is often the precursor to a sustained, directional move.

A similar stretch of lower volatility was seen in June, which later saw Bitcoin sliding after tagging into the lower band.

Tesla sales outpace crypto altcoins as they weigh on Bitcoin

(Bloomberg) — Smaller cryptocurrencies like Ether and Avalanche are outperforming bitcoin as Tesla Inc.’s recent sales disclosure weighed on the market’s bellwether.

Bitcoin was mostly little changed after falling 3.9% to $22,348 early Thursday. Ether, the second-largest digital currency by market value, rose 3.2% to $1,569. Avalanche rose 6.4% to $25.43.

The broader crypto sector is benefiting from increased risk appetite, with technology shares leading gains among US equities. Bitcoin has been correlated with technology shares amid recent price declines.

Tesla said on Wednesday that it sold about 75% of its bitcoins in the second quarter due to concerns about the company’s overall liquidity due to the Covid shutdown in China. Tesla CEO Elon Musk, who has been a major influencer in cryptocurrency, said the sale “shouldn’t be taken as some judgment on Bitcoin.”

Musk has expressed interest in Bitcoin and Dogecoin, and at one point allowed customers to buy Tesla electric cars with the tokens. The company later suspended the Bitcoin payment option, citing environmental concerns about cryptocurrency mining.

Tesla isn’t the only company to adopt the Bitcoin strategy. Other companies to watch for significant bitcoin holdings include MicroStrategy Inc. and Block Inc., led by cryptocurrency advocates Michael Saylor and Jack Dorsey, respectively. MicroStrategy will release earnings on August 2 and Block on August 4

Bitcoin’s 50-day moving average, which has recently been a negative indicator for investors, despite a positive historical trend, has turned around, according to Bespoke Investment Group’s July 21 note. Other similar moves have led to big gains for Bitcoin, with notable exceptions.

“While short-term returns are generally good, a long-term crypto bull market resumption is hardly warranted based on historical analogs,” the note reads.

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