Bitcoin (BTC) surged to a one-week high on July 17 amid warnings that traders should not trust the current BTC price action.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Binance Flow Sees Multi-Week High
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD reached $21,600 on Bitstamp, the best performance since last Sunday.
The pair saw a fresh rally over the weekend, however this came on the back of retail-led ‘off hours’ liquidity with institutions out of the picture.
With Bitcoin vulnerable to “fake” moves up and down in such circumstances, there was little appetite to believe that the current trajectory would continue as the weekly close approached.
“Don’t let the CT noise change your view of how things really work,” Il Capo of Crypto social media account told his followers that day, referring to the Crypto Twitter accounts.
“I’m not worried about this scam pump. It’s still completely out of the market, you’ll see why soon.”
It also appears that traders have been preparing to exit the market, as major exchange Binance has seen increased inflows in the 24 hours to the time of writing.
According to still-flowing data from on-chain analytics platform CryptoQuant, on July 17 inflows approached 17,500 BTC, the largest number in a single day since June 22.
Binance BTC flow chart. Source: CryptoQuant
However, some commentators remained optimistic about the short-term outlook. Cointelegraph contributor Michael van de Poppe got his wish as the market rebounded overnight.
“Overall, the strength is still there and I think there is more upside going. The critical barrier at the moment; $21,000,” he explained ahead of the move.
As reported by Cointelegraph, possible upside targets include $22,000 and the 200-week moving average around $22,600.
Binance’s latest order book data across the analytics resource indices showed a new wall of pooled buying support at the breakout point of $21,200, worth about $20 million.
BTC/USD (Binance) order book data chart. Source: Material Indicators
Weekly closing keeps chart narrative smooth
On the weekly time frames, the July 17th close is likely to be significant.
Related: Bitcoin Now In Longest ‘Extreme Fear’ Period Ever
At $21,300, Bitcoin will not only close the second “green” weekly candle, but also its highest weekly close since early June.
BTC/USD 1-week candlestick chart (Bitstamp). Source: TradingView
However, $500 stands between this outcome and the continuation of the downtrend, as the July 10 close reached around $20,850.
Popular trader and analyst Rekt Capital noted at the time that the event hit a higher low for the week, along with a “buy side volume dip.”
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