BTC (Bitcoin) is holding support above $42,000 and might encounter resistance around $50,000 as short-term momentum behind the short-squeeze rally disappears. This cryptocurrency was trading around $47,400 at the time of our report and is up 3% over the past day.
The short-term uptrend stays untouched in spite of some overbought pullbacks that were resolved to the upside. Bitcoin stays in breakout mode after rallying past $42,000. Which signed the fulfillment of a two-month consolidation phase.
- The relative strength indicator (RSI) on the four-hour chart is around overbought levels. Which in most cases precede short pullbacks. The last excessive overbought reading on July 26 happened before a 10% pullback.
- Bitcoin has kept a series of higher price highs since the August 6 breakout above $42,000. This shows that buyers keep protecting support levels as the broader uptrend improves.
- The weekly chart has positive momentum signals look like to the beginning of a crypto rally around November 2020.
The current was slightly because of the low investor contribution because to seasonal effects. In addition, it was seen in other asset classes.
Investors reclaimed a net $22.1 million from cryptocurrency funds last week. The sixth continuous week of outflows. Even as Bitcoin (BTC, +0.42%) and many other digital assets rallied, a new report suggests.
It’s the longest streak of outflows since January 2018, based on the report on Monday by the digital-asset manager CoinShares.
Investors saw an outflow of $22 million of Bitcoin, in spite of that, the biggest cryptocurrency recently traded up to $48,200 from a low of $29,608 last month. Bitcoin was shifting hands at $46,074 at the time of this report. It has a small change over the past 24 hours.
CoinShares saw that the fund outflows come “at a time of low investor participation probably because of seasonal impacts as seen in other asset classes.” Trading volumes in the investment products are running at $3.1 billion every week, down from $7 billion in May.
Total assets under management in the digital-asset investment products increased 10% week-to-week to $55 billion. Mainly due to price improvement.
Last week, investment products focused on Ethereum netted outflows of $1.1 million, while funds related to Binance coin saw $900,000 of outflows and investors reclaimed $300,000 from multi-asset funds.
Bitcoin is joined with Ethereum and cardano, which have surged 11% and 53% in the last week respectively.
The crypto market cap
The crypto market cap exceeded $2 trillion for the first time since mid-May as Bitcoin headed to the rally, based on CoinMarketCap data.
- Bitcoin raised to $48,048 early Monday, the highest level since May 17.
- The world’s biggest cryptocurrency by market cap joined by Ether and cardano, which have surged 11% and 53% in the past week respectively.
- The crypto market cap drowned as low as $1.19 trillion on July 20. The data is based on CoinMarketCap data. It means that the sector has almost doubled in value in less than a month.
- After a reaching a peak of more than $2.5 trillion on May 12. Crypto pulled back and experienced a couple of months of downward pressure as the mining crackdown in China took hold.