Bitcoin reached $40,000 after 6 weeks of absence, but on-chain activity is “a little bearish”

Bitcoin (Bitcoin) It touched $40,370 on July 26, as the strong gains witnessed the return of major price milestones.

BTC/USD 1-minute candlestick chart (Bitstamp). Source: TradingView

BTC price rose close to 20% daily

Data from Cointelegraph Markets Pro and Transaction view It shows that BTC/USD touched 40,400 US dollars and then consolidated around late Monday.

The currency pair maintained the previous night’s gains throughout the day, hovering at $38,000, and then surged again after the opening of Wall Street.

In some understandable excitement among investors waiting for the rally to eventually recover, Cointelegraph writer Michaël van de Poppe cautioned against being overly bullish at current levels.

“Bitcoin still shows strength, although the mood becomes ecstatic again when it approaches range resistance,” he said wrote Just before $40,000.

“The trend has changed because the market has created higher highs. I think unless we break through $41,000, we will still see HL at $34.5-36,000 in the next few weeks.”

This will mark the exit of a long-term trading range that has existed for more than two months.

BTC/USD buying and selling positions (Binance).Source: Material Index/Twitter

Looking at the support and resistance levels of Binance, the major exchange at the time of writing, shows that buyers above $36,000 have relatively little activity, and sellers still have $41,000.

Material Indicators, which provides Binance data, added that moving averages are important when trying to understand the current trend.

“Quiet” on-chain activity may inhibit bulls

Despite the impressive gains on Monday, Van de Poppe is not alone in calling for a pragmatic assessment of the entire Bitcoin market.

related: The price of BTC is burning a bear market on its way to $40,000: 5 things worth paying attention to in Bitcoin this week

inside The latest version of In its weekly newsletter “The Week On-chain”, data analysis company Glassnode also emphasized that on-chain activities need to catch up with price performance to maintain the market.

The analyst wrote: “Overall, on-chain activity remains somewhat bearish and continues to remain calm.”

“In this case, the use of the Bitcoin network may lag behind the price. Ideally, new volatility and constructive price action will stimulate demand for block space. If not, this may indicate that in the next few years, A more cautious framework is needed in the week.”

The last time Bitcoin interacted with the $40,000 mark was during a short return visit from a low level in mid-June.