Bitcoin (BTC) has resumed upside tendencies after last week’s slight retracement and early this week’s uncertainty. The uncertainty emerged as market players eagerly awaited inflation data that was softer than expected.
The lower inflation stats bolstered investor sentiments. That encouraged broad bullishness. Bitcoin gained approximately 6.9% within the last three days, changing hands beyond $24K during this publication. Meanwhile, price action over the past two weeks offers some idea about upcoming moves.
Meanwhile, BTC’s ascending channel has restricted price movements inside a resistance and support level. Maintaining that range can see BTC extending its rally to encounter a possible reversal at the $25,500 value area.
Are There Breakout Chances?
Bitcoin holders should beware that the MACD indicates a notable bullish momentum reduction, compared to the past rallies inside the present range, especially during July sessions. Nevertheless, addresses holding more than one BTC experienced steady upticks over the past two weeks. Maintaining this pace might mean enough BTC momentum to support a breakout.
On the other side, addressed purchasing may tapper out as BTC nears the resistance level. The Purpose BTC ETF Holdings index is also another crucial indicator to consider. This ETF has been purchased amid rallies and massively dumped during dips. Therefore, it highly contributes to price actions.
For instance, the Purpose BTC ETF index recorded an uptick from 24,898 $BTC on August 9 to 26,079 $BTC the following day. That matched the Bitcoin bullish actions during this timeframe. Meanwhile, this metric will likely see outflows as the BTC price nears the resistance level. That presumes the market will see increased sell strength.
Furthermore, BTC’s recent surge received support from massive accumulation. Data from Santiment shows Bitcoin’s age consume metric confirmed that nearly 12.05 million BTCs changed hands. Meanwhile, the upside catalyzed the high MVRV ratio, and more investors enjoying profits meant impending downsides.
Bitcoin could witness yet another correction after retesting its next resistance. Nevertheless, investors should beware that the Moving Average Convergence Divergence shows the present trend may not prevail. Meanwhile, time will reveal everything.
What are your opinions about the above analysis? Feel free to comment below.
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