Bitcoin (BTC) Price Analysis for July 26

Bitcoin price made a sharp pullback from nearly $70,000 in early sessions of Tuesday after traders turned speculative about the US Government

Bitcoin price encountered a setback on Tuesday as traders speculated on the possibility of the US government selling its seized crypto assets. This news drove BTC price down from the crucial level of nearly $70,000.

The speculations began when Arkham Analytics reported the US government's transfer of $2 billion in Bitcoin to two new wallet addresses. This news led to a negative reaction in the BTC price, causing it to lose the $69K territory. At the time of writing, BTC trades at $66,443 with a 24-hour growth of -3.84%.

This price action is part of a larger pattern that has been unfolding in Bitcoin's price throughout 2024. The asset has been rising to key levels of strong physiological resistance and then rejecting down to major support zones.

For instance, in mid-January, BTC reached a multi-year high of $47000 following the launch of the Bitcoin Spot ETF. However, this surge was quickly reversed, with Bitcoin dumping below $40,000 in the next few days to begin another rally.

A similar move occurred in early March when the price hit a new all-time high at $69,000 and fell below $60,000 within hours.

Later in the same month, Bitcoin pulled back again from its all-time high of $73,500. Months later, this level was challenged once more.

This price action may be concerning for leveraged traders, but spot and futures traders view it as a strong technical indicator.

Moreover, Bitcoin has been making higher highs and lower lows, indicating a bullish trend in the short, mid, and long term.

It is also noteworthy that in early July, Bitcoin dipped below $54000 after the German government began selling its Bitcoins. However, by the close of the month, BTC had reached $66K, showing a good gain margin from its opening price of $63000 in the same month.

Bitcoin Analysis

On the BTC/USDT 4hr chart, we can observe Bitcoin price actions continuing within the Widening wedge pattern, while an ascending trend line is also being formed.

Today, the price faced rejection at the weekly resistance of $69,648 and currently trades at $66,600.

Interestingly, the RSI at 42 and Awesome above the neutral level of 50 indicate a reversal in bullish momentum.

A breakout above $69000 could lead to support at $70K and further push toward an all-time high if the US political news and ETF outflow are neutralized.

On the other hand, if Bitcoin falls below $65000, it could reach the 50-day EMA price, bringing $64,000 into view as a key support.