u.today
Though at the moment, Bitcoin remains well below its all-time high of close to $65,000 achieved in April, it has been showing a strong consecutive recovery over the past eight days.
By rising back to the $41,000 level, the flagship crypto added 6.1 percent. Other digital currencies, including the second-biggest coin Ethereum, have been also rising on the Bitcoin momentum.
Here’s what pushing Bitcoin up
According to the recent analytics data, there have been three factors that have pushed Bitcoin, among other reasons.
However, these three metrics provided by a popular analytics vendor, have gone high up and when they skyrocket together, the analytics team tweeted, the market usually goes on the rise.
The analytics report says that Bitcoin’s social and trading volumes have reached a 5-week high this week. The Bitcoin wallet activity has surged to a 3-week high.
Factors suggested by CryptoQuant
According to the data shared by a CryptoQuant analyst, currently there are other three positive factors that are playing for Bitcoin’s rise but on the short term period so far.
First, the spot exchange Bitcoin reserves are showing a downtrend. Second, Bitcoin derivative reserves are going sideways on the chart and the estimated leverage is at the low levels, thus pushing speculators out of the market. The third factor is that stablecoin reserves on exchanges are flowing into Bitcoin.
What we are looking short-term at?
— CryptoQuant.com (@cryptoquant_com) July 28, 2021
Read more in Quicktake👉https://t.co/XDZpQ8MutA pic.twitter.com/0pN7tRxL4r
No breakout expected to happen yet, here's why
Prominent Netherlands-based analyst Michael van de Poppe does not expect Bitcoin price to perform a breakout yet.
Before it happens, he believes, the flagship digital currency likely needs to find a higher low –that’s Bitcoin is doing now, according to the tweet he published on Tuesday.
#Bitcoin still acts in resistance here, through which I'm not expecting a breakout to be happening, yet.
— Michaël van de Poppe (@CryptoMichNL) July 28, 2021
Preferably, you'd like to see a higher low being constructed, before a breakout occurs.
Especially with everyone becoming ultra bullish. pic.twitter.com/ApZTzvvX2V
At the time of writing this, Bitcoin is sitting at the $39,775 level, as per the data provided by the CoinMarketCap platform.