Bitcoin Ends The Week Lower At Close To $29,700 While Evil Pepe Approaches $200k in Presale

The Bitcoin price has struggled throughout the week, showing strong uncertainty among investors. The coin’s price was locked between a support at $30k and a resistance at roughly $31k for nearly a full month.

While many expected Bitcoin to break the resistance and skyrocket as a resolution, the coin did the opposite, breaking the support and dropping below it.

The decline reflects an asset that was stuck in a tight trading range and also shows that Bitcoin’s time has not come just yet. The coin’s Fear and Greed Index also indicates that the market was not going anywhere.

The recent pullback has brought a lot of bearish sentiment to crypto Twitter, but according to Pastel Network’s co-founder, Anthony Georgiades, the factors behind the current situation are pretty simple.

He noted that the strengthening of the dollar and the recent tech sell-off have had a negative effect on Bitcoin and the broader crypto market. The coin’s price surged following the multiple ETF filings, only to drop when the SEC rejected them.

While the proposals were amended and re-filed, it appears that there is not much faith in the ETF filings being approved this time around.

A bigger issue with Bitcoin?

After Bitcoin’s price failed to react in a significant way to the ETF re-filings, Mike McGlone, a senior macro strategist at Bloomberg Intelligence, warned that there may be a bigger issue with the asset.

Stalling at about $30,000 amid hype about potential for an ETF launch and the seemingly unstoppable stock market, a Bitcoin pause may signal bigger economic issues.

Yes, Bitcoin Matters – If It Stalls, There May Be a Bigger Issue. Stalling at about $30,000 amid hype about potential for an ETF launch and the seemingly unstoppable stock market, a #Bitcoin pause may signal bigger #economic issues. pic.twitter.com/xucLAVLqec

— Mike McGlone (@mikemcglone11) July 20, 2023

McGlone posted an analysis that noted that, after the coin’s 100% increase from the last year’s lows, another 2x advance might require a similar foundation. In other words, Bitcoin has to see another significant decline in order to climb higher.

After climbing about 5% since the end of 1Q, vs. closer to 20% for the Nasdaq 100 Stock Index, trailing Bitcoin may catch up or portend headwinds from a potential deflationary economic storm. Our bias is the latter.

US government sells another batch of BTC

Another contributor to Bitcoin’s drop in price, or at least its inability to keep pushing further up, might come from the US government.

Over the years, the US government conducted several raids against dark web organizations, the biggest and most famous being the darknet marketplace, Silk Road. During those raids, the government confiscated massive amounts of Bitcoin, which it is now selling.

According to recent reports, the government recently sold another 8,200 BTC. The amount is lower than the first confirmed sale of 9,861 BTC that were sold in March for $216 million.

CryptoQuant believes that the government still holds 195,307 BTC. One transaction moved 9,319, split into two addresses — one with 8,200 BTC, and another with 1,119 BTC.

The former address forwarded 8,200 to several other addresses, each of which received 79 BTC. These coins were then eventually deposited onto exchanges, or recombined into fewer wallets, according to CryptoQuant.

The 195,307 that remains are believed to be the coins seized from other criminal incidents, such as the Bitfinex hack.

Bitcoin price drops to $29.7k

Bitcoin price has spent the last week seemingly trading sideways, with relatively small fluctuations. However, according to the coin’s 7-day chart, the price has actually been decreasing steadily during this time.

During the initial drop on July 14th, BTC dropped to 29,980, but over time, its lows kept reaching lower and lower, leading to yesterday’s drop to $29.7k.

Yesterday, July 20th, BTC price seemingly managed to secure its place above $30k. However, as the day started coming to a close, Bitcoin suddenly crashed into new support.

In the early hours of July 21st, the price attempted recovery, which took up to $29,937, the highest point Bitcoin had reached since yesterday’s correction.

Since then, the price corrected again, rejected by the resistance at $30k without ever reaching it. At the time of writing, Bitcoin sits at $29,800.27. Meanwhile, its trading volume grew to $19.4 million.

What to expect next?

The short-term situation regarding Bitcoin remains unclear. Some experts are optimistic, saying that the coin has reached the support floor, so growth is possible.

The price is also still above the 200-day moving average, which backs the initial prediction. However, the increase in sell pressure could cause further losses, in which case the support will be broken, and Bitcoin will have to seek the next ones, first at $29,668 and then at $29,500.

With the coin’s volume being fairly low and the fact that the price was rejected from $30k, some experts are becoming more convinced that Bitcoin does not have conditions for further growth at this time.

One analyst predicted a double bear signal in the divergence chart, concluding that it is too risky to buy now.

They expected the coin to drop to $27k and are curious to see what might happen over the weekend, fully expecting to see the bears push the coin further down.

The volumes remain low for now, so there is not much to provide hope for growth.

Evil Pepe presale approaches $200k

At the moment, Bitcoin price is highly uncertain, causing many to question what will happen next and, more likely, to wait to see new developments before reacting.

On the other hand, investors seem to be more excited about a new meme coin, Evil Pepe (EVILPEPE).

The meme coin started its presale only a few days ago and already saw great demand. The asset raised nearly $200,000 within days, selling its token at a $0.000333 per $EVILPEPE.

The token is available in exchange for ETH and USDT; anyone interested in buying can still join the presale. The event will last for another 12 days, so there is plenty of time left to buy and for the project to reach its goal of $1.99 million raised.

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