BTC's price performance is on track to limit its biggest gain since March on the weekly chart, but anything can happen before the close.
Bitcoin (BTC) hit a three-day low at the weekly close on July 10, with $21,000 acting as short-term support.
Traders focus on bullish divergence in different markets
BTC/USD gave up some of its gains earlier in the week, but still looked to cap its best weekly gain since March, according to Cointelegraph Markets Pro and TradingView.
At the time of writing, the pair hovered at $20,850, about $1,600 below this week's high of the 200-week moving average.
While the breakout didn't continue, Bitcoin left some commentators cautiously optimistic heading into the new week.
Cointelegraph writer Michael Van de Poppe summed it up: "The market is showing a higher bullish divergence in the time frame, the same sentiment as the funeral."
"The secret of reversal is there, it can accelerate quite quickly. Invest when no one else is interested. Sell when everyone is interested."
Popular trader Crypto Tony also embraced the idea of a new sideways phase, one that would "drive everyone crazy" before further declines.
The macro picture remains unclear, with the turmoil in Sri Lanka adding to tensions triggered by common global themes such as the energy, food and financial crises.
Attention was focused on the DOLLAR index (DXY), which ended the week with renewed support after soaring to new highs not seen in 20 years.
Risk reserves hit record lows
At the same time, those seeking gold buying opportunities on BTC are getting new key signals from reserve risk indicators.
As commentator Murad noted over the weekend, reserve risk, which indicates long-term holder sentiment, hit an all-time low in July prices.
"Either this metric is broken or we are in the bottom area of the high time frame," he said in part of a Twitter comment and data from Glassnode, an on-chain analytics company.
"I'm leaning toward the latter."
As Cointelegraph reports, reserve risk has been rediscovering its green "buy" zone since March, which corresponds to the best investment opportunities for "excess return."