A few hours ago, during early trading in Asia, Bitcoin prices tapped $47,200, according to Tradingview. It is the highest the asset has changed hands for since May 15.
The move had built upon the momentum that began in late July when BTC broke out of its range-bound channel to the upside. At the time of press, Bitcoin had retreated slightly to trade at $46,200, now less than 30% away from its mid-April all-time high of $64,800.
This week’s action has pushed prices above the 200-day moving average, which is a bullish sign in the longer-term monthly picture. The next level of resistance lies just below $50K.
In its Monday review, on-chain analytics provider, Glassnode, commented.
“As a well observed technical indicator for bull/bear bias, the markets response to a rejection or breach of the 200-day MA is likely to be a source of attention over the coming weeks.”
Bitcoin Supply Squeeze
Glassnode continued to mention that there has been the potential for a Bitcoin supply squeeze. It observed that there had been an extraordinary recovery of Long-Term Holder (LTH) owned coins. The total supply held had approached 12.48 million BTC – extremely similar to the volume of coins held by LTHs in October 2020, before the primary bullish impulse started.
“This on-chain response is largely indicative of the volume of coins that were accumulated in Q1 2021 that remain tightly held. It too paints a quite bullish picture for aggregate market conviction.”
It explained that increases in LTH Bitcoin supply is a characteristic of bear market accumulation, and bull markets are the result of a supply squeeze forged in bear markets.
Analyst “PlanB” also hinted at the possibility of markets going into a “second leg” of the bull run being 16 months after the May 2020 halving.
#Bitcoin at $46K. We are 16 months after the halving (red line), awaiting the second leg of this bull market. pic.twitter.com/W3MliGI5kf
— PlanB (@100trillionUSD) August 9, 2021
Elsewhere on Crypto Markets
The momentum has lifted total market capitalization by 4.5% on the day to reach $1.9 trillion, according to CoinGecko.
Ethereum has been one of the best performers, with a 6% daily gain to reach $3,120 at the time of writing. ETH prices are up almost 20% on the week, largely buoyed by the bullish fee burning as a result of the London hard fork.
Other crypto assets performing well at the moment include Dogecoin, Polkadot, Uniswap, Litecoin, and ICP.
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