BTC Hits a Weekly High

On July 17, Bitcoin (BTC) surprised traders by reaching $21,600, the best performance it had seen since July 10. But hold your horses — it’s essential to remember that not all that glitters is gold. Many market watchers were skeptical about this sudden jump, pointing out the thin liquidity and the absence of institutional traders during the weekend.

Weekend Trading: A Cautionary Tale

Weekend surges often lead to what can be described as ‘phantom pumps.’ As one trader sagely advised, “Let’s see how this one holds going into the weekly close tomorrow.” Weekend movements tend to attract retail traders, creating a false sense of stability. The social media buzz on Crypto Twitter (CT) added more confusion to the mix, leading some traders to be cautious. A notable figure, Il Capo of Crypto, reassured his followers, “Not worried about this scam pump. Still fully out of the market, soon you will see why.”

Inflows and Outflows: A Peek at Binance

Even as Bitcoin prices rose, major exchanges like Binance saw a significant uptick in inflows, nearing 17,500 BTC in just a day, marking the highest activity since June 22. Such movements often indicate that traders are anticipating further fluctuations. You might think of it like a game of musical chairs; is it better to be on the dance floor or find a seat before the music stops?

The Power of Support Levels

Despite caution in the air, some analysts maintained optimism regarding Bitcoin’s short-term trajectory. Cointelegraph contributor Michaël van de Poppe pointed to key resistance levels, noting that breaking through $21,200 could lead to more upside movement. The analysis suggested potential targets like $22,000 and even a higher moving average at around $22,600. It’s like trying to find the perfect parking spot in a crowded lot — you might find one, but it’s all about how close you can get to the entrance.

Importance of the Weekly Close

The weekly closing numbers carry weight in predicting future movements. The close on July 17 at around $21,300 could introduce a green weekly candle for Bitcoin, marking the highest close since early June. However, a mere $500 gap stood between potential bullish sentiment and falling back into downward trends. As analyst Rekt Capital pointed out, the week’s performance could be pivotal, with decreasing buy volume painting a cautious picture.