Bitcoin (BTC) hit three-day lows into the July 10 weekly close as $21,000 gave way as short-term support.
Trader eyes bullish divergences across markets
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD giving up some of its gains from earlier in the week while still looking to cap its best weekly gains since March.
The pair circled $20,850 at the time of writing, around $1,600 below the week’s peak at the 200-week moving average.
Despite no continuation of the breakout, Bitcoin gave some commentators cause for cautious optimism ahead of the new week beginning.
“The markets are showing higher timeframe bullish divergences and the sentiment is the same as on a funeral,” Cointelegraph contributor Michaël van de Poppe summarized.
“A recipe for a reversal is there, and it can accelerate quite fast. Invest when nobody is interested. Sell when everyone is interested.”
Popular trader Crypto Tony meanwhile entertained the idea of a new sideways phase entering before a deeper drop, something which he imagined “would drive everyone crazy.”
$BTC / $USD – Playing with ideas
If we start to reject harder and fail to reclaim the range high, we may start to see something like this shape up. Would drive everyone crazy i can imagine pic.twitter.com/wwoa8vjMRv
— Crypto Tony (@CryptoTony__) July 10, 2022
Macro conditions remained uncertain, with upheaval in Sri Lanka adding to a sense of nervousness engendered by the common global theme of energy, food and financial crisis.
All this crazy shit happening in the world, I just can’t see how anyone can be macro bullish
we need new buyers and retail, without that there is no continuation… only chop
all pumps are an opportunity to exit and buy lower$BTC pic.twitter.com/npAKi1L8uw
— Ninja (@Ninjascalp) July 10, 2022
Attention focused on the U.S. dollar Index (DXY), which had ended the week back on support after spiking to fresh highs not seen in twenty years.
Risk Reserve hits all-time lows
Those seeking a golden buying opportunity on BTC meanwhile got a fresh key signal from the Reserve Risk indicator.
Related: Bitcoin ‘cheap’ at $20K as BTC price to wallet ratio mimics 2013
As noted by commentator Murad over the weekend, Reserve Risk, which shows long-term holder sentiment, hit its lowest-ever levels at July’s prices.
“Either this indicator is broken or we are in the high timeframe bottoming zone,” he said in part of Twitter comments alongside data from on-chain analytics firm Glassnode.
“I lean towards the latter.”
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