- Bitcoin is on the verge of its strongest weekly close since March.
- The overall situation remains uncertain.
- Risk Reserve indicator indicates favorable buying opportunity.
Bitcoin (BTC) fell to a three-day low below $21,000 on July 10 today, which could still dampen a strong week towards the end.
Bitcoin Price Chart (Bitstamp). Source: TradingView
Strong week is muted
As the data from Cointelegraph Markets Pro and TradingView show, BTC /USD has already lost parts of the gains made during the week, in fact, the market-leading cryptocurrency was on track to record its best weekly close since March.
At the time of writing, the Bitcoin price is moving by 20,850 US dollars and thus 1,600 US dollars below the interim weekly low, which was still at the level of the important 200-week moving average.
So, since the jump from the price range seems to be impossible to continue, Bitcoin gives some observers reason to be pessimistic about the upcoming week.
“Although the market shows positive divergences for the longer time horizon, the mood is still like a funeral,” as Cointelegraph expert Michaël van de Poppe notes. To which he appends:
“It could go back down quickly and quickly.“
Meanwhile, the trader Crypto Tony assumes that things will initially go sideways again before a new downturn comes, whereby he suspects that such a return would “drive us all crazy”.
$BTC / $USD – Playing with ideas
If we start to reject harder and fail to reclaim the range high, we may start to see something like this shape up. Would drive everyone crazy i can imagine pic.twitter.com/wwoa8vjMRv
– Crypto Tony (@CryptoTony__) July 10, 2022
Meanwhile, the overall economic situation remains uncertain, because today there have been political unrest in Sri Lanka, which could exacerbate the already tense situation.
All this crazy shit happening in the world, I just can’t see how anyone can be macro bullish
we need new buyers and retail, without that there is no continuation… only chop
all pumps are an opportunity to exit and buy lower$BTC pic.twitter.com/npAKi1L8uw
– Ninja (@Ninjascalp) July 10, 2022
In addition, the focus is once again on the US Dollar index (DXY), which has fallen back to a support level after recently reaching a twenty-year high.
US Dollar Index (DXY). Source: TradingView
Risk Reserve as low as rare
After all, there is also a good sign for crypto investors, because the so-called reserve risk indicator gives hope.
For example, the Reserve Risk indicator, which reflects the mood among long-term investors, is currently at its lowest level in a long time (see below).
“Either this indicator is no longer correct or we have finally reached the long-term bottom,” as one crypto expert points out, referring to data from Glassnode. To this end, he adds:
“I tend to the latter.“
Bicoin Risk Reserve and Bitcoin rate compared. Source: @MustStopMurad/ Twitter
As Cointelegraph has reported, the key figure has been in the green “buy area” since March, which suggests that an investment in Bitcoin offers the best possible risk-reward ratio at the current time.
