After a brief period of uncertainty at the beginning of this week and a slight retracement during the previous week, Bitcoin (BTC) has resumed its tendency to move upward. As market participants eagerly awaited inflation data that was weaker than anticipated, uncertainty arose.
The decrease in inflation statistics boosted investor confidence. That encouraged widespread optimism. The price of bitcoin has increased to over $24,000 as of the time this article was published, representing a gain of approximately 6.9% over the past three days. Meanwhile, the price action over the past two weeks provides some insight into future price movements.
In the meantime, BTC’s price movements have been confined within a resistance and support level due to the ascending channel. BTC’s rally could extend if this range is maintained, with a possible reversal at the $25,500 value area.
Exist Breakout Prospects?
Bitcoin owners should be aware that the MACD indicates a significant reduction in bullish momentum compared to previous rallies within the present range, particularly during July sessions. Despite this, the number of Bitcoins held at addresses with more than one BTC has been steadily increasing over the past two weeks. Maintaining this pace could generate sufficient BTC momentum for a breakout.
Alternatively, as BTC approaches the level of resistance, addressed purchases may wane. There is also the Purpose BTC ETF Holdings index, which is another essential indicator to take into consideration. This ETF has been purchased during rallies and dumped heavily during declines. As a result, it has a significant impact on market fluctuations.
For example, the Purpose BTC ETF index increased from 24,898 $BTC on August 9 to 26,079 $BTC on August 10. This was consistent with Bitcoin’s bullish behavior during this time frame. At the same time, as the BTC price approaches the resistance level, investors are likely to begin selling off this indicator. That assumes the market will experience increased selling pressure.
Additionally, massive accumulation has been a driving force behind Bitcoin’s recent surge in value. According to data from Santiment, the Bitcoin age consumption metric confirmed the exchange of approximately 12,05 million BTCs. In the meantime, the upswing fueled the high MVRV ratio, and the increasing number of profit-seeking investors foreshadowed impending downsides.
Following a retest of the cryptocurrency’s subsequent resistance level, there is a possibility that the price will undergo yet another correction. However, investors should be aware that the Moving Average Convergence Divergence indicates the current trend may not continue. Time will eventually reveal everything.
What are your thoughts in response to the analysis that was presented above? Please leave a comment below.
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