Bitcoin price is trading at $46,300 as buyers appear to be exhausted ahead of the $50,000 resistance
Bitcoin price traded in a variable range yesterday as buyers appeared to have exhausted the resistance at $50,000. The cryptocurrency is trading at around $46,319 at press time and has been roughly flat over the past 24 hours.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price rally expected to pause
After hitting $48,000 as AZCoin News reported yesterday, BTC price dipped below $45,800 while bulls scrambled to stop the slide. And at the moment, BTC has rallied back to the $46,300 region but still recorded a 3% drop over the past 24 hours. Bitcoin’s spike from $29,500 on July 20 to $48,000 on August 14 has stabilized the price in a trading range of $44,000 to $48,000.
According to analyst Nunya Bizniz, the equilibrium point is found near $46,123. Maybe he could be hinting that after BTC tests the support, buy volumes could increase because short-term traders would view the current pullback as nothing more than a support/resistance retest.
Source: Nunya Bizniz/Twitter
According to a report from Glassnode, another indicator of the bullish potential for BTC is the miner accumulation. A net reduction in compulsory sell-side pressure sourced from miners. But now it has increased.
Bitcoin miner net position change | Source: Glassnode
China’s crackdown on mining operations which began in May, took a heavy toll on the Bitcoin hash rate, leading miners to close up shop and move to a more friendly stance towards crypto mining.
“We have seen the net balance position of miners continue to increase over the last two months. The net growth of miner balances has now hit +5k BTC/month, which demonstrates a net reduction in compulsory sell-side pressure sourced from miners”, Glassnode stated.
Furthermore, Bitcoin has just hit its most significant single hour of address activity since the July 4th flag of the United States, despite a primarily flat Monday thus far. This spike, occurring between 6 pm and 7 pm UTC, increases the total unique addresses interacting on BTC’s network.
Upside exhaustion signals could support a brief period of consolidation as gains are digested, and short-term overbought conditions are relieved. Even though the trend has flipped bullish, a pullback is to be expected before continuation. This is because there has been declining volume with a price increase.
Even so, $46,500 remains an essential level for BTC in the short term. If it breaks through this level, BTC may gain more bullish momentum.
“BTC is still retesting the Ascending Triangle top, wicking below it but ultimately trying to stay above it. Downside wicks are fine as long as a Daily Close above ~46,500 occurs. That’s what’s needed to confirm a successful third retest attempt”, crypto Twitter analyst Rekt Capital tweeted.
Source: Rekt Capital
A daily close above $46,500 would support the continuation of the uptrend, whereas an ascending triangle breakdown could see Bitcoin price slide into the low $40,000 zone.
On Monday, the total crypto market cap surpassed $2 trillion for the first time since mid-May, according to CoinMarketCap data. Ether and Cardano are standouts in the recent crypto rally, with solid rallies month to date, rising 26% and 62%, respectively, compared with a 16% rise in BTC during the same period. XRP is also up 70% so far this month.
But now, ETH is changing hands at $3,179, down 4% in the last 24 hours, along with BTC’s decline. XRP has returned to the $1.2 zone, down 8% on the day but still holding above the $1 level. Solana (SOL) price and Terra’s LUNA tokens hit all-time highs yesterday. The price rally for the tokens representing two projects built for the DeFi sector shows that investors remain confident about the industry, especially in layer one protocols, despite security risks exposed by the biggest DeFi hack ever in monetary value last week.
The overall cryptocurrency market cap now stands at $1.983 trillion, and Bitcoin’s dominance rate is 43.8%.
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