Next Resistance for Bitcoin is at $50K, Big Boy Is Holding Support

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Buyers could stay active on pullbacks this week as bitcoin removed important technical levels. Bitcoin (BTC) rallied above $45,000 as upside momentum got better over the past two weeks. The next level of resistance is at $50,000. Which this can restrict further upside given short-term overbought signals. Bitcoin grew about 2% over the past day. It is around $45,600 at the time of this report and holding support above $40,000.

  • The relative strength index (RSI) on the daily chart is overbought for the second time since July 31. Which led up to a near 10% price decrease.
  • Although, the weekly RSI is increasing from neutral levels with a positive momentum signal for the first time since October 2020, which reignited the long-term uptrend.Buyers may stay active on pullbacks this week as bitcoin cleared important technical levels such as the 100-day moving average.

A clean break above the 200-day moving average could speed up prices. This was based on digital asset firm Zerocap.

Bitcoin Prices

Bitcoin, the world’s biggest and oldest crypto, got to its highest point in almost three months on Saturday before paring back some of the weekend’s gains.
Prices are stable and are down around 1.5% on a 24-hour basis after getting a top of $45,300. And it was the highest point since May 18. As the time of the report, Bitcoin is changing hands for around $43,430.

Datamish data indicates Bitcoin’s push to higher price highs (HH) and higher price lows (HL) was accelerated by a short squeeze which saw 126 BTC short positions liquidated on Friday.

“Perpetual funding rates have turned positive, meaning that the derivatives market is clearly positioned to the long side,”. Toby Chapple, the head of trading at digital asset firm Zerocap, talked about it. “This positioning is also supported by an expanding futures basis curve, showing that market sentiment is gradually building.”

Crypto tax

Considerable outflows from exchanges have also been speeding up, showing a lack of short-term selling intent. Based on the digital asset firm. In spite of market thoughts around the proposed crypto tax reporting provision in the U.S. infrastructure bill, institutional activity is once again high.

“This is reflected in the Grayscale premium reaching toward positive territory, albeit slowly,”  Chapple mentioned that, referring to the difference between the value of the assets held by the Grayscale Bitcoin Trust against the market price of those holdings.

Wallet addresses

In fact, on-chain data also offers further signs of bullish activity. Wallet addresses with greater than 0.1 BTC are at their highest point in two months. And also they have continued to rise since July 28. This rise was up 3.19 million from June 14’s 3.14 million, Glassnode data shows this statistics.
large market members holding between 100 and 10,000 BTC, keep building long-term positioning which “bodes well for the structure of the market,”. Based on Zerocap data.
Bitcoin’s HH and HL bullish charting pattern talks about the risk-taking mood currently brewing in the market which made prices to move toward the 200-day moving average. A significant marker of bullish activity when prices are high and conversely bearish when below.

“The 200-day moving average at approximately $45,000 has provided some resistance –  a clean break here could lead to the next accelerated push higher,”. Chapple mentioned it.

Other significant cryptos in the top 20 by market capitalization are also shedding some of the weekend obtains with chainlink, polygon, and Dogecoin having sunk the lowest.
Meantime, the often attempt to sell cousin of Bitcoin, gold’s spot price, shortly plummeted to a low of $1,681 from around $1,760 on Sunday evening. Prices have kept rising and are sitting around $1,761 per troy ounce.

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