Bitcoin [BTC] has concluded the first week of July on a healthy uptrend as improved market sentiments paved the way for more accumulation. The bullish activity resulted in a significant uptrend that pushed it above $22,000 on the morning of 6 July.
The king token also soared as high as $22,527 on 6 July. This was the first time that it crossed back above the $22,000 price level since mid-June. It managed to achieve this thanks to strong demand in the market this week. The upside was strong enough to push it out of its short-term wedge pattern in which it has been trading since June.
Source: TradingView
Bitcoin experienced strong buying volume during 7 July’s trading session after breaking above its descending resistance line. However, it has since pulled back to its $21,515 press price courtesy of increased selling pressure when its Relative Strength Index (RSI) entered the overbought zone in the four-hour chart. The Money Flow Index (MFI) registered some outflows in the last 24 hours at press time.
Shorts liquidations may have played a hand in the upside
The latest upside was not backed by any standout announcements. However, a closer look at BTC’s metrics reveals that a significant amount of leveraged short positions were liquidated. Glassnode’s futures shorts liquidations metric reveals a sharp uptick in liquidations from $10.23 million to $29.42 million between 6 and 7 July.
Source: Glassnode
The liquidations may have provided the extra bullish pressure that pushed Bitcoin above $22,000. The upside was also backed by higher exchange outflows than inflows for the last few days. Exchange outflows grew from 20,495 BTC against 18,648 BTC exchange inflows on 3 July. It had 50,966 BTC in exchange outflows against 43,601 BTC in exchange inflows by 7 July.
Source: Glassnode
The higher exchange outflows than inflows resulted in higher buying pressure for the cryptocurrency. Most of this volume came from the retail segment given the limited whale…
