What’s next for Bitcoin price

Bitcoin traders split on where the price of BTC will go now that it has failed to convert the $40,000 support level into resistance. The announcement earlier this week that Amazon would accept cryptocurrency payments created a surge of euphoric anticipation across the crypto market. However, as Bitcoin (BTC) bulls encounter heavy resistance at the $40,000 level, their euphoria is fading.

Bears have successfully resisted multiple attempts to convert the $40,000 level to support, according to data from Cointelegraph Markets Pro and TradingView. The defence of this zone continued on July 29 as Bitcoin’s price action remained stagnant, raising concerns that the price could fall back to last week’s $35,000 to $30,000 range.

Bull and bear market

Bitcoin’s rapid rise from $31,000 to $40,925 brought the price dangerously close to its 21-week exponential moving average, which widely regards as a bull market indicator.

The 21-week EMA is currently around the $40,000 price level, effectively separating bulls from bears, as seen in the tweet above. One of the responses to the above tweet cautions overly bullish traders, pointing out that similar moves in the past followed by lower lows and an extension of bear market conditions.

Bitcoin whales, who have embraced Warren Buffett’s mantra of being fearful when others are greedy and greedy when others are fearful, have bought up low-priced BTC as weaker hands tap out. In the previous four weeks, whale wallets have amassed 130,000 BTC while the price of Bitcoin has dropped below $35,000. With such substantial accumulation in the lower $30,000 to $35,000 level, some experts believe whales may try to orchestrate another price collapse to keep accumulating.

Long-term cycles

When there is near-term uncertainty, it is sometimes best to take a step back and look at the big picture of where the market is and what possibilities the future holds.

Bitcoin’s four-year cycle is currently about 65 per cent through its bull-market phase, according to Inmortal up only, and the trader predicts a top at $150,000, followed by a correction to $32,000.

There is still plenty to be optimistic about in the future for traders and holders who prefer to operate on a longer time scale. Experienced market participants understand that the price movements seen in the last few months are part of Bitcoin’s normal progression.

Ethereum

The second-largest blockchain network, Ethereum, poises to go through a technical shift that will radically affect how transactions handle while simultaneously limiting supply.

The Ethereum Improvement Proposal 1559 update compared to a bitcoin halving event, in which the quantity of bitcoin reduced over time through periodic modifications. Each halving contributed to bitcoin’s price reaching new highs.

The current price of ether, managing partner at Darma Capital, does not account for the upcoming software upgrade, according to Andrew Keys

EIP-1559 is a software upgrade that fundamentally alters how Ethereum transactions are processed by providing transparent pricing on transaction fees paid to miners in ether.