Cryptocurrency Analysis

[IFX_Selena]

Bitcoin prepares to storm final resistance level to launch growth phase

Bitcoin prices rose 15% and come close to a difficult milestone over the past week, which held back the growth of quotes. On Monday, August 9, bitcoin managed to break through and consolidate above the $45,000 mark. Buyer's support reached a new level, thanks to which the asset managed to pass the zone where two resistance levels passed. The final pressure range near $48,000-$50,000 remains ahead. Given the volume of daily trading, the interest of buyers, and the main indicators, the only question that arises is: "When will bitcoin break through the $48,00-$50,000 range?"

As of 12:00 UTC, the first cryptocurrency managed to consolidate above $45,500 and prepare for a further upward movement. Daily trading volumes remain high above $40 billion, indicating an upward trend in interest in the coin. In addition, the cryptocurrency managed to make a powerful leap beyond the difficult milestone thanks to positive changes among the audience of sellers. The bitcoin rate remained below the 20-week moving average for a long time. Thanks to this, the audience of the asset was cleared: uncertain investors and short-term players left the asset, and only stern bulls remained in the game. This is also evidenced by statistics from Glassnode, according to which the backbone of BTC buyers are whales with wallets of 10,000-100,000 coins. Thanks to this, the crypto managed to increase the pace of consolidation and become less volatile and subject to sharp price fluctuations provoked by inconsistent decisions.



In addition, bitcoin's on-chain activity continues to grow and is fully consistent with the current exchange rate. This speaks to a sequence of whales that have patiently ramped up coin volumes over the past few months. In fact, thanks to the large holders of bitcoin, large volumes of bears were bought out, and thus the market was insured from falling to the very bottom. At the same time, the retail audience is also starting to return to the asset. This is evidenced by the social activity in the cryptocurrency network, as well as the number of unique addresses in contact with BTC. Also, the number of daily transaction volumes is at a record low, but this is due to the large volumes of coins in a limited circle of people. The retail audience is just starting to arrive, so this figure will change very quickly. There is also a big surge in activity in the futures market, where the share of longs significantly exceeds the number of shorts. The market played an important role in the current growth of the asset, supporting it at the right time and not succumbing to the negative news from the regulators. The combination of these factors makes it possible to state with confidence that bitcoin will soon hold and win the last battle before the start of the growth phase.

The final target of bitcoin is the range of $48,000-$50,000, where a month and a half ago, a large number of stops and sell options were opened, which can cause problems for the cryptocurrency. However, market sentiment, the underlying technical indicators of the coin, and growing social activity will allow bitcoin to pass this mark without significant tests of the immediate areas of resistance. At the same time, according to the current dynamics, the market does not have time to accumulate the necessary volumes for a sustainable assault on the final range of fluctuations. However, in the medium term, this only guarantees a deeper, but local correction, which will take place inside the upward channel. At the moment, there is no real or potential news background or any other fundamental factor on the market that can interrupt the current rally in the cryptocurrency and bitcoin market.






Artem Petrenko
Analytical expert
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