Bitcoin (BTC) Price Trends Higher After Plunging Lower Last Week, But Patience Is Key

BTC price remains technically bearish below the $60,000 and the $64,000 line.

Bitcoin price is up after a sharp drop last week, but technicals remain bearish below $60,000 and $64,000.

Bitcoin price fell as low as $53,500 last week, but buyers stepped in, halting the sell-off and preventing further losses.

At press time, BTC price is up, approaching $60,000.

This means that traders who panicked and sold their BTC holdings are now regretting it, while leveraged short-sellers who sold after July 4 are also underwater.

However, buyers are not yet in the clear, and there is still weakness, at least from a technical perspective.

Bitcoin price analysis: here’s why patience is key

One analyst, looking at on-chain developments, believes that the best approach now is to “wait,” despite the bearish price action from a top-down view.

A short-term squeeze could be forming, forcing sellers to close their positions by buying back at higher prices, which would lift the price further.

However, bulls are far from being back in control until there is a close above $60,000, preferably with rising volumes.

A close above the psychological hurdle and technical resistance at $60,000 is key, as it could set up the next leg up to $63,000.

At press time, the Bitcoin Exchange Flow Multiple (30D/365D) metric shows that the market is indecisive and at its lowest in six years.

This metric compares the average daily exchange outflow over the last 30 days to the average over the last 365 days.

The contraction indicates decreasing exchange activity, with investors sitting on the sidelines, waiting for clear signals before re-entering the market.

Note that this does not mean that prices have to rise for the metric to rise. A drop from current levels, breaking July lows toward $50,000, could also spark activity.

Whales accumulating but Bitcoin must break $64,000

While exchanges are seeing low activity, entities holding 10 to 100 BTC have been buying, increasing their stash.

Since the approval of spot Bitcoin ETFs in the U.S. in January, these whales have been stacking coins in the ranges of $40,000 to $66,000.

Although these whales could be exchanges, given their activity when prices crashed below $60,000, the recent entry of fresh capital via spot Bitcoin ETFs is a net positive for buyers.

Still, traders have a reason to sit out the markets, at least for now, or better yet, to align themselves with the prevailing bearish trend.

With BTC price trending at around $58,600 at press time, it is far below the Bitcoin Short-Term Holder Cost Basis, which stands at around $63,900.

This short-term cost basis is the average purchase price of BTC for holders who bought the coin within 155 days.

If prices continue to fall, recoiling lower from current levels, these holders may panic-sell, cashing out for fiat or USDT and accelerating the sell-off.

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