Bitcoin price rallies above $11,000 as the USD weakens

BTC Bitcoin price

The stellar performance of the Bitcoin price is silencing critics. As Bitcoin bulls soar, climbing over obstacles and registering solid gains in the past few hours, fundamentals will likely fan more demand. 

Of note is the general state of the global economy. 

With the United States in tatters and the USD suppressed, the direct correlation between the mainstream store of value, gold, and Bitcoin hints of caution. 

A weak USD

On Thursday (July 30, 2020), the USD index plunged to levels last seen in 2018. 

The U.S. Federal Reserve has subsequently stated their desire to intervene. Although Americans may likely receive another stimulus check under CARES Act, the FED keeping interest rates close to zero and further ramping up their bond purchases may trigger a capital flight to safe havens. 

In that case, select fiat currencies and precious metals will likely receive another wave of capital injection. Gold and digital gold—when economies stall and the risks of depression looms, tend to benefit. 

At this pace, their gains may be immense, and further jolt prices and market cap to new valuations. 

Most Bitcoin addresses are “in the money”

Therefore, it is no surprise when a recent observation by Glass Node revealed that over 93 percent of BTC addresses are “in the money.”

The recent explosion in prices could explain this but still, most are holders who have been through the cataclysm of March 2020. 

Then, the Bitcoin price fell to around $4,500 following increasing coronavirus infection rates across the United States and the globe. 

Given the speculative nature of crypto participants, some—if there is an unexpected shock and BTC prices slide, may liquidate, heaping pressure on bulls.

Bitcoin price analysis

Bitcoin Price Daily Chart for July 31, 2020

At the time of press, the Bitcoin price is trending above $11,100. Adding 16 percent versus the USD in the last trading week, BTC is yet to trump the performance of ETH.

From candlestick arrangement, the underlying momentum seems to be strong. Even though there were cases of over-valuation on July 28-30, today’s bar is edging higher. 

Most importantly, Bitcoin bull bars are banding along the upper BB and continue to diverge away from the middle BB with increasing participation. The greater the divergence, the higher the volatility. 

Also, as banding increases and the Bitcoin price continues its near perpendicular rise, the higher the underlying momentum. 

Combined, candlestick arrangements suggest strong upward momentum building a bullish case.

Technically, as long as the Bitcoin price levitates above June 2020 highs of $10,500, every dip should be a buying opportunity. 

Sharp losses below the 20-day moving average and $10,500 at the back of high trading volumes could mark a local top, signaling exhaustion.

Chart courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author. This is not investment advice. Do your research.

Dalmas Ngetich

Dalmas Ngetich

Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies. Enjoying the opportunity to help educate bitcoin enthusiasts, he writes insights and coin price chart analysis.

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