Bitcoin (BTC) sought to retest range highs at the July 16 Wall Street open as the market brushed off Mt. Gox BTC movements.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin clings to “classic disbelief rally”
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength returning for a fresh trip to $64,000.
Still down overall around 1% since the daily open, BTC/USD nonetheless showed resilience in the face of billions of dollars’ worth of coins leaving the cold wallet linked to defunct exchange Mt. Gox.
While some ignored the initial knee-jerk market reaction to the transactions, some popular traders called for caution.
Despite Bitcoin gaining in excess of 10% since the start of the weekend, they warned, those gains were still far from guaranteed to endure.
“I can see an argument for both scenarios atm- that the LTF impulse off 58k may be our bottom OR that this was just a deviation/fakeout to gather some momentum to take out our lows,” Credible Crypto wrote in part of a post on X (formerly Twitter).
BTC/USD, ETH/USD charts. Source: Credible Crypto/X
Daan Crypto Trades meanwhile warned that BTC/USD returning below $60,000 “wouldn’t be great.”
“So far, we’ve seen a solid disbelief rally where yes, there’s some euphoria by those that are allocated but also a lot of short squeezes and confused reactions by those who didn’t expect a move this quick,” he told X followers.
“In my opinion, a retest back to 59-60K wouldn’t be great and would show weakness. Technically it’s a good level and the chart would be okay if it holds. But in practice, these kind of ‘perfect retests’ rarely come and are often just a sign of weakness.”BTC/USD chart. Source: Daan Crypto Trades/X
Analyst stresses importance of Bitcoin range reclaim
Zooming out, however, popular trader and analyst Rekt Capital argued that the significant change in trend had already occurred.
Related: Buying the dip? Bitcoin institutional investors add 100K BTC in a week
“The Re-Accumulation Range has successfully been reclaimed,” he explained, referring to Bitcoin’s trading range in the weeks following April’s block subsidy…
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