Bitcoin Resistance at $50K, Bitcoin will Hold Support

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Bitcoin support

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 despite 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 that look like the beginning of a crypto rally around November 2020.

Investor contribution

The current was slight because of the low investor contribution because of 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, despite 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 had a small change over the past 24 hours.

CoinShares fund

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.

Ethereum investment

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 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.

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