Bitcoin price back above $47,000 in further inspiration for bulls, some signals shows altcoin season arrived
Bitcoin price abruptly broke out of lower levels to challenge the firm’s resistance on Friday to add inspiration to the bulls. At the time of writing, BTC is changing hands at $47,002, recorded an increase of more than 6% in the last 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price nor altcoins are in any mood for cold feet
Neither Bitcoin nor altcoins are in any mood for cold feet on Friday, with gains in some of the top 10 cryptocurrencies topping 10%. The BTC/USD trading pair has hit a local high of $47,415 on Bitstamp. The pair had received a welcome boost from news of a Bitcoin fund launch from Wells Fargo, which fuelled 24-hour gains of over 5%.
Bitcoin price is poised to challenge the established resistances at $47,000 and above – these still keep the bulls in control at the time of writing.
According to an analyst Rekt Capital, a key support area to watch was now broader – $44,000 and $46,500.
“BTC successfully Daily Closed above orange, which has led the price to immediate resistance at the Lower High (black),” he commented on an accompanying chart showing the relevant price zones. “BTC could get rejected from here, even if just for a small dip to retest the top of the orange area as support.”
BTC/USD 1-day candle chart (Coinbase) with price levels | Source: Rekt Capital/Twitter
A subsequent dip below $47,000 did not last long, with momentum still evident as the $48,000 sell wall loomed. As AZCoin News reported, Bitcoin was unimpacted by the news that significant exchange Binance would enforce identification measures for all users beginning in September.
According to CryptoQuant, Bitcoin and Ethereum are massively withdrawn with a solid positive price correlation. Various cryptocurrency exchanges have lost more than 2 million ETH and 100,000 BTC in less than a month. In USD, the overall value of these outflows totaled $10.4 billion.
The overall outflow from exchanges has been continuously growing since 2020. This could be an indication of the beginning of a potential bull run. In general, Bitcoin and the cryptocurrency market started a steady growth in 2020, when exchanges progressively lost their reserves.
ETH: All Exchanges Inflow | Source: CryptoQuant
Generally speaking, progressive cash flow shows that selling pressure is easing because market participants keep their cryptocurrencies on wallets rather than depositing them in different exchanges to sell later.
The Altcoin index shows the value of 82 this month, which means a better performance of the alts than Bitcoin. The main reason for the mini-altcoin season to come was the uncertainty on the Bitcoin chart and a continuous consolidation that began almost a week ago.
Source: Altseason index
Similar strength was observed as a knock-on effect for altcoins, with Cardano (ADA) returning to outshine market heavyweight Ether (ETH). However, ADA posted daily gains above 20%, climbing above $2.50. XRP and Polkadot (DOT) both manage 10% returns.
Another coin that has had a significant impact on the altcoin index was the coin of the Solana Foundation. Due to the solid fundamental value and rapidly growing DeFi sector, SOL has received the attention of private investors and gained 244% in value since the end of July.
The overall cryptocurrency market capitalization stood at $2.038 trillion amid the broader altcoin comeback.
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