Bitcoin hits $40K after a 6-week absence, but on-chain activity is ‘somewhat bearish’

Bitcoin (BTC) touched $40,370 on July 26 as a solid day of gains saw the return of a major price milestone. 

BTC price daily gains near 20%

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD touching $40,400 before consolidating nearby later in the day.

The pair had held on to previous gains from the night before throughout the day, circling $38,000 before another surge took hold after the the Wall Street open.Amid some understandable excitement from investors who had waited for upside to finally resume, Cointelegraph contributor Michaël van de Poppe cautioned against being overly bullish at current levels. “Bitcoin still showing strength, although sentiment is getting euphoric again while approaching the range resistance,” he wrote just before $40,000 hit.That would mark an exit from a long-established trading range that has been in place for over two months. 

A look at support and resistance levels on major exchange Binance at the time of writing showed relatively little buyer activity above $36,000, with $41,000 still in place for sellers.

Material Indicators, which provided the Binance data, added that moving averages were important to consider when attempting to understand current movements.

“Quiet” on-chain activity may dampen bulls

While July 26’s gains were impressive, van de Poppe was not alone in calling for a pragmatic appraisal of the Bitcoin market at large.

In the latest edition of its weekly newsletter, “The Week On-chain,” data analytics firm Glassnode likewise highlighted the need for on-chain activity to catch up with price performance in order to sustain the market.

“Overall, on-chain activity remains somewhat bearish and continues to be quiet,” analysts wrote.
The last time that Bitcoin interacted with the $40,000 mark was during a brief revisit from lower levels in mid-June.

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