Bitcoin (BTC) closed above $ 41,000 in July in a ‘bullish engulfing’ candle that dramatically increased its previous downward trend.
In a tweet on August 1, investor and entrepreneur Alistair Milne joined many people to celebrate a classic return for BTC pricing action.
Bitcoin refuses to flip bearish
After seeing three straight monthly red candles in a row, BTC / USD held on to gains to place a monthly close that few expected.
Despite the drop to $ 29,000, the bear could not stay in the driver’s seat, while July came to an end when resistance levels dropped and sentiment improved.
“Bullish is engulfed on the monthly chart for Bitcoin,” Milne concluded.
A bullish engulfing pattern is a chart pattern formed when a small red candle is followed by a large green candle, i.e. July, whose body completely covers or engulfs the body of the previous candle (June).
The ascent – and the endurance – was so surprising that even experienced hudders seem confused about what to do next.
Data on the chain show that some long-term holders (LTHs) are actually selling as BTC / USD rise, something that, according to analyst Lex Moskovski, corresponds to the “disbelief” phase of a classic market cycle.
Moskovski highlights the long-term indicator of spent production profit ratio (LTH-SOPR), which reached its lowest levels in 2021 this weekend.
SOPR looks at the value of coins that have been moved in a specific period to get an impression of the profitability of coins being sold. The host Glassnode explains that a downward trend towards the neutral 1 value indicates that the profitability among the coins concerned is low.
“Some long-term bitcoin holders are selling this refusal with minimal profit, as indicated by LTH-SOPR which reached this year’s low two days in a row,” Moskovski said.
“That’s one of the reasons we’re still 41k. Unbelief.”
Bulls meanwhile continue to look for triggers that can send BTC / USD to well over $ 42,000 resistance, it has undergone two tests in the last 24 hours.
Out there, as Cointelegraph noted, little stands in the way of $ 45,000 and $ 47,000.
PlanB, the creator of the stock-to-flow price model family, was equally enthusiastic about its positive side on Saturday, describing Bitcoin’s end of July as a recovery ‘like a clockwork’.
#bitcoin July closing price $ 41,490 … it jumped off the lows, like clockwork pic.twitter.com/xZIlbaBBqI
– PlanB (@ $ 100 billion) August 1, 2021
Stock-to-flow, while currently demanding a Bitcoin price of nearly $ 100,000, remains valid, while PlanB gives a August minimum requirement of $ 47,000.