Bitcoin’s (BTC) price is trading at $63,099 with a bearish bias, but still remains up 0.1% over the last 24 hours and 10% over the last week.
On Sunday July 14, BTC price reclaimed the crucial $60,000 support level, indicating that whales were buying at lower levels.
CoinShares data shows that Bitcoin witnessed inflows of $1.35 billion, the fifth largest weekly inflows on record. Last week’s flows brought year-to-date inflows into Bitcoin investment products to $17.22 billion.
According to CoinShares, investors took advantage of the price weakness following the latest drawdown in Bitcoin’s price to buy more on the dips.
Coinshares head of research James Butterfill said,
“We believe price weakness due to the German Government bitcoin sales and a turnaround in sentiment due to lower than expected CPI in the US prompted investors to add to positions.”
Bitcoin’s recovery also comes on the heels of a weakening dollar with the DXY index dropping by more than 1% over the last seven days.
The bulls tried to push the US dollar index above the 50-day exponential moving average (EMA) at $104.7 on July 9, but the bears held their ground.
The index has been on a correction since July 10 and has reached the crucial support at 103.
This weakness in the index that tracks the value of the greenback points to increasing strength in risk-on assets including Bitcoin and other cryptocurrencies.
Bitcoin price analysis
Bitcoin price reclaimed the crucial 200-day EMA at $58,320 on July 13, indicating that the bearish momentum is weakening. The price then went on to clear two other important levels represented by the psychological levels at $60,000 and $62,000 respectively.
The bulls will try to strengthen their position by pushing the price above the $64,000 overhead resistance. If this happens, the price of the big crypto is likely to pick up momentum and reach the $72,000 to all-time high at $73,835.
The positive outlook is supported by the sharp rise in the relative strength index. The price strength at 55 suggests that the bulls have began taking control of the price.
On the downside, if the price turns down from $64,000, it will suggest that the bears are selling on the latest rally. The pair could then pullback to the $62,500 level, where the 50-day and 100-day EMAs appear to converge. Lower than that, the price may seek solace from the 200-day EMA at $58,00.