Bitcoin's Resilience Sparks Investor Confidence Under Market Volatility

Bitcoin's resilience attracts bullish investors as inflows into US-based spot ETFs hit $310 million, suggesting confidence in a short-term bottom formation.

Source: www.innova.com.tr

After a period of sideways movement, Bitcoin briefly dipped below its range but failed to sustain the breakdown on July 8, indicating weakening selling pressure at lower levels. This attracted bullish investors, aiming to maintain the price within the established range.

Recent data from Investors reveals significant inflows of $310 million into US-based spot Bitcoin exchange-traded funds on July 12, marking the highest since June 5. These inflows suggest market participants are increasingly confident in a short-term bottom formation. Bitcoin's resurgence is set to enhance market sentiment and propel the cryptocurrency markets higher. Key resistance levels must be maintained for Bitcoin and select altcoins to accelerate their recovery momentum.

Bitcoin Price Analysis

Bitcoin bounced off the $56,552 support on July 12 and surged above the 20-day simple moving average ($59,422) on July 14, signaling a potential comeback by the bulls. The relative strength index (RSI) shows positive divergence, indicating reduced selling pressure. Sustaining the price above the 20-day SMA could pave the way for a rally towards the crucial resistance at $64,602.

However, the bears are expected to defend the 20-day SMA and attempt to push the price below it. A successful bearish move could lead to a retest of the $56,552 support level. Despite the bulls initially pushing the price above the downtrend line on the 4-hour chart, maintaining higher levels remains challenging, suggesting bearish pressure may still be present.

A pullback is likely to find support at the 20-day SMA, potentially indicating a shift in sentiment from selling on rallies to buying on dips, strengthening the case for a rally towards $64,602. On the downside, a break below the moving averages would favor the bears, potentially leading the price toward $56,552 and possibly to $53,485.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.