Bitcoin Price Up 12% – Time to Buy BTC?

The Bitcoin price has been on a rise all week, with investors now confident that the bear market’s effects might be wearing off.

With bulls returning and the market turning green, everyone is hoping that this might be the best time to buy BTC.

Of course, there’s always the risk of prices slipping once more – it’s happened several times before. So, should you buy BTC right now? Let’s take a look.

Bitcoin: Crypto’s Dominant Pioneer

As the first cryptocurrency, Bitcoin has enjoyed the power of incumbency since digital assets became mainstream.

Created in 2009, the asset has moved from being an internet relic to one of the most transformative things in the financial space in the last century.

Bitcoin remains the most valuable financial asset in the world, and its grip on the crypto space has become even stronger following the market downturn. Data from TradingView shows that the Bitcoin dominance index stands at 47.63 percent. This means that any movements in the asset’s price will most likely lead to gains across the board.

Also, acceptance from several large companies has helped Bitcoin to grow too. Tesla and MicroStrategy are just two big organizations that have gotten neck-deep in Bitcoin over the past year. With other firms set to incorporate it, the sky truly is the limit.

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Ready to Dust Off July 2021?

Bitcoin’s performance in July 2021 has been a bit of a mixed bag. The Bitcoin price entered the month on a slide, dropping from a high of $36,563 on June 29 to enter the month at $34,450.

Despite the bulls trying their best to buy BTC and prop its price up, the asset never really showed any headway signs. It stayed under the $36,000 mark for the entire month, keeping other asset prices capped as well.

Then, last week came. Grayscale Investments, the industry’s largest asset management firm, unlocked $1.4 billion in Bitcoin that had been locked since the beginning of the year.

Grayscale just had the biggest GBTC unlock today and nothing exploded. One more big unlock on the 20th and then the whole GBTC crashing #bitcoin narrative will be over.

What FUD will they come out with next? pic.twitter.com/j22BWfzSAq

— Lark Davis (@TheCryptoLark) July 19, 2021

Analysts feared that this influx of coins would glut the market, and they were right. From July 20th, Bitcoin slipped below the $30,000 mark.

Thankfully, the slide didn’t last. Bulls were able to buy BTC at the dip and prop up the Bitcoin price. The asset has been on the upsurge since then.

Currently, Bitcoin trades at $38,487 – up 11.7 percent in the past 24 hours and 23 percent in the past week.

When was the last time #BTC tested the 50-day EMA resistance?

Back in October 2020

This is when $BTC formed an almost identical fractal of Bitcoin's current price action#Crypto #Bitcoin pic.twitter.com/kJXHceRwWf

— Rekt Capital (@rektcapital) July 25, 2021

This also marks the first time that Bitcoin will break the $38,000 mark since June 17. Investors will be quite giddy at the moment.

Bitcoin’s Technical and Fundamental Analysis

Bitcoin’s technical indicators look quite good. Its relative strength index (RSI) stands at 68.54.

While it shows that Bitcoin is approaching the overbought status, this is actually a drop from the 90.48 recorded less than 12 hours ago.

The Bitcoin price is also trading above the 20-day moving average (MA) of $38,148, putting the asset on track for further price gains

With the Bitcoin hash rate set to hit 100 exahashes per second this week, miners are returning to the network following China’s crackdown.

The Bitcoin network difficulty is also expected to increase by almost 4 percent by the time of the next readjustment later this week. If this happens, it will mark the first positive change in mining difficulty since May – and a strong signal that the downturn’s effects are wearing off.

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