en
Back to the list

Bitcoin Price Analysis - BTC Bulls See 46% Monthly Gains As Buying Power Remains Strong, $50K This Week?

Bitcoin

coincodex.com 17 August 2021 12:37, UTC
  
Reading time: ~5 m

Key highlights:

  • BTC is now up by a whopping 46% over the last month as the coin trades around $47K
  • The cryptocurrency reached resistance at $47,820 (bearish .618 Fib) over the weekend and has since dropped lower
  • Bearish divergence was present before BTC rolled over
Bitcoin price $47,000
Key BTC resistance levels $46,000, $43,915, $42,655, $41,400, $40,000
Key BTC support levels $47,820, $49,325, $50,000, $50,660, $52,000

*Price at the time of publication


Bitcoin is up by a strong 46% over the course of the month as the cryptocurrency reaches as high as $47,820 over the weekend. The cryptocurrency had rebounded from support around $37,500 at the start of August and continued its run higher as it broke back above $42,000. 

After breaking $42,000, the coin pressed upward and continued to soar until resistance was met at $47,820 over the weekend, where resistance was met at a bearish .618 Fib Retracement level. BTC rolled over from there to find support at the 100--day EMA today and rebound to $47,000 - where it currently trades.

Optimism for BTC was driven by Walmart this week after they posted a job vacancy looking to hire somebody to lead its digital currency and cryptocurrency initiatives. Walmart, the USA’s largest employer, entering the space is quite significant as it shows that the heavyweight giants are all interested in innovative technology. 

Looking at some on-chain metrics, it seems that miners are starting to finally get back online since the great Chinese-driven mining migration. Looking at hash rate data, we can see that the total hash rate for the network has now bounced by 25% from the lows seen in July:

Although it is still down significantly from the hash rate peak, it suggests that the migrating miners are starting to finally get their mining rigs back online again as they re-locate. As a result, the total revenue generated from miners, combined with the falling difficulty adjustment, has allowed mining revenue to increase by around 57%.

Furthermore, it seems that miners are continuing to remain quite confident about the future price of BTC as they hold onto their BTC. Typically, when miners sell their mined BTC it signals that they are not so confident about the future price of the asset and decide to sell to cover their expenses.

It seems that miners are not the only segment that is optimistic about BTC. The total average social sentiment has been in positive territory since the July lows, indicating the majority of the industry are starting to feel optimistic about the current state of BTC.

In addition to this, it seems that more people are starting to use the Bitcoin network itself again. The total number of active addresses has been falling over the past few months and reached as low as 505K at the end of July. Since hitting this low, the total number of active users has finally increased again and has reached above 1 million users for the first time in over a month.

Furthermore, more BTC continues to leave exchanges than is entering. This suggests that users are in accumulation mode and are sending their purchased BTC away from exchanges into cold storage. Currently, BTC is leaving exchanges at a rate of around 100K BTC per month.

If this trend continues, there will be a supply shock within the market as the total liquidity available to purchase could potentially dry up. This would help BTC soar back toward the all-time high prices.

Bitcoin price analysis

What has been going on?

Looking at the daily chart above, we can see the rebound from $37,500 (.382 Fib Retracement) at the start of August, allowing BTC to continue its rally higher. It had penetrated above a descending wedge formation at the end of July and has been on a remarkable run higher ever since. 

Last week, BTC broke above the 200-day EMA at around $45,000 and continued higher to reach resistance at $47,820 on Friday. The resistance here was provided by a bearish .618 Fib Retracement level and prevented BTC from pushing higher. 

It is important to note that there was a substantial bearish divergence between the RSI and price action in the run-up to BTC, hitting resistance at $47,820. BTC has since rolled over but founds support at the 200-day EMA and is trading around $47,000.

Bitcoin price short-term prediction: Bullish

The recent price hike over the past three weeks has now turned BTC bullish in the short term. BTC would now have to drop beneath the August support at $37,500 to turn neutral in the short term and would need to continue further beneath $31,500 to be in danger of turning bearish.

If the sellers do push lower, the first support lies at the 200-day EMA, just beneath $46,000. This is followed by support at $442,915 (.382 Fib Retracement), $42,655 (.5 Fib Retracement), $41,400 (.618 Fib Retracement), and $40,000.

Added support beneath $40,000 is then expected at $38,000, where lies the 100-day EMA level.

Where is the resistance toward the upside?

On the other side, the first strong resistance lies at $47,820 (bearish .618 Fib Retracement level). Above $48,000, resistance is expected at $49,326 (1.272 Fib Extension - blue), $50,000, and $50,660 (1.618 Fib Extension - orange).

Above this, resistance lies at $52,000, $53,000 (bearish .786 Fib Retracement), $54,000, and $56,000 (bearish .886 Fib Retracement).

Keep up-to-date with the latest Bitcoin Price Predictions here.


   Source
Back to the list

Similar news
Suggest news