Bitcoin eyes best weekly gains in 3 months as BTC price slips below $21K

Bitcoin (BTC), which hit three-day lows in the July 10 weekly close, was $21,000 at the time. This support served as short-term support.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Bullish divergences in the markets are a focus for Trader

Cointelegraph Markets Pro data and TradingView data showed that BTC/USD lost some of its gains during the week, but still managed to maintain its highest weekly gains since March.

At the time of writing, the pair was at $20,850, which is $1,600 less than the peak week at the 200-week moving mean.

Bitcoin provided some reason for cautious optimism ahead the new week, despite the fact that the breakout did not continue.

Michael van de Poppe, a Cointelegraph contributor, stated that the markets are showing more bullish divergences over a longer time frame and that sentiment is the same on a funeral.

“There is a recipe for a reversal, and it can happen very quickly. Invest when no one is interested. Sell when everyone is looking.

Crypto Tony, a popular trader, entertained the notion of a new sideways phase before a deeper fall. This idea he thought “would drive everybody crazy.”

$USD / BTC – Playing with Ideas If we reject more and fail to reclaim the range high we might start to see something similar. Would drive everyone crazy i can imagine
— July 10, 2022, Crypto Tony (@CryptoTony__).

The macro conditions remained uncertain with the upheavals in Sri Lanka contributing to a feeling of nervousness that was triggered by the global theme of energy and food crisis.

All this crazy shit happening in the world, I just can’t see how anyone can be macro bullish we need new buyers and retail, without that there is no continuation… only chop all pumps are an opportunity to exit and buy lower$BTC
— Ninja (@Ninjascalp) July 10, 2022

The U.S. dollar Index, DXY (USDI) was the focus of attention. It had been on support for the week after reaching new highs not seen since twenty years.

U.S. dollar Index (DXY), 1-hour candle chart. Source: TradingView

All-time lows in Risk Reserve

The Reserve Risk indicator provided a new signal to those looking for a golden opportunity to buy BTC.

Related: Bitcoin price to wallet ratio mimics 2013 at $20K – Bitcoin is ‘cheap” at $20K

Commentator Murad noted that Reserve Risk, which measures long-term holder sentiment at the prices of July, was at its lowest level ever.

He said, “Either that indicator is broken, or we are within the high-timeframe bottoming zone,” in part of Twitter comments along with data from Glassnode on-chain analytics firm Glassnode.

“I lean toward the latter.”

Bicoin Risk Reserve vs. BTC/USD chart. Source: Twitter @MustStopMurad

Cointelegraph reported that Reserve Risk has been rediscovering the green “buy” zone in March. This corresponds to optimal opportunities to invest with “outsized return” as a result.

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