Bitcoin (BTC) hit three-day lows until the weekly close on July 10, when $21,000 gave way as short-term support.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
Traders see bullish divergences between markets
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD gave up some of its gains from earlier in the week while still attempting to cap its best weekly gains since March.
The pair is circling $20,850 at the time of writing, around $1,600 below the 200-week moving average’s weekly high.
Although the breakout did not continue, Bitcoin gave some commentators grounds for cautious optimism ahead of the start of the new week.
“Markets are showing bullish divergences on higher timeframes and sentiment is the same as a funeral,” said Cointelegraph contributor Michaël van de Poppe summarized.
“A recipe for reversal is there, and it can accelerate pretty quickly. Invest when nobody cares. Sell if everyone is interested.”
Popular trader Crypto Tony, meanwhile, had the idea of a new sideways phase occurring before a deeper drop, something he envisioned would “drive everyone crazy.”
$BTC / $USD – Play with ideas
If we start rejecting harder and fail to reclaim the range high, we may see something like this developing. Would drive everyone crazy I can imagine pic.twitter.com/wwoa8vjMRv
— Crypto Tony (@CryptoTony__) July 10, 2022
Macroeconomic conditions remained uncertain, with the upheaval in Sri Lanka adding to a sense of nervousness generated by the shared global theme of the energy, food and financial crises.
With all this crazy shit going on in the world, I just can’t understand how anyone could be macro bullish
We need new buyers and retail, without them there can be no sequel…just hoes
All pumps are an opportunity to exit and buy lower$BTC pic.twitter.com/npAKi1L8uw
— Ninja (@Ninjascalp) July 10, 2022
Attention focused on the US Dollar Index (DXY), which ended the week back on support after hitting new highs not seen in twenty years.
US Dollar Index (DXY) 1 hour candlestick chart. Source: TradingView
The risk reserve reaches all-time lows
Meanwhile, those looking for a golden buying opportunity in BTC got a key new signal from the reserve risk indicator.
Related: Bitcoin ‘cheap’ at $20,000 as BTC price-to-wallet ratio mimics 2013
As written down by commentator Murad over the weekend, Reserve Risk, which shows the long-term sentiment of holders, hit an all-time low at July prices.
“Either this indicator has broken or we are in the high timeframe zone,” he said in a portion of the Twitter comments alongside data from on-chain analytics firm Glassnode.
“I tend towards the latter.”
Bcoin Risk Reserve vs. BTC/USD chart. Source: @MustStopMurad/ Twitter
Reserve risk, like Cointelegraph reportedRediscovered its green “buy” zone since March, which corresponds to optimal opportunities to invest with “outsized returns”.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.