Bitcoin‘s price action has been exciting enough to keep traders and investors on the edge of their seats over the last few weeks. After oscillating close to $45k for two days in a row, the crypto finally retested and breached the $48k level. In fact, at press time, BTC was trading just under $49,000 on the charts.k
This provided the market with much-needed relief. Especially since Bitcoin’s foray beyond $48k was celebrated by analysts who were anticipating a breakout.
With daily gains of almost 4% at press time, the market seemed primed to push BTC towards $50,000. The same was evident when the crypto’s RSI was observed. The indicator in question was noting an uptick at the time, with the same underlining the spike in buying pressure.
Buyers seemed to be keen on securing higher support levels as they eyed $50k. What’s more, the 200-day simple moving average (SMA), at the time of writing, was acting as much-needed support for its price.
The perfect plot for an uptrend
Outflow dominance for Bitcoin paved the perfect path for a breakout. As highlighted by Glassnode, Bitcoin exchange flows returned to the dominance of outflows through August. Investors withdrawing BTC indicated both, a bull impulse, as well an accumulation.
The market has transitioned through a number of phases of exchange flow dominance over the last year. Outflow dominance was last seen in late 2020, and the same was followed by a bull a run.
Source: Glassnode
Moreover, accumulation was further backed by the significant drop in Liveliness for BTC. This meant that a high proportion of coin supply is dormant, implying an increase in HODLing behavior. It also suggested that global Coin Day Accumulation has been outpacing Coin Days Destroyed.
The strength shown by bulls and long-term holders in pushing BTC above $48k inevitably cleared its path to $50k. Will it happen though?
Bullish cards for Bitcoin if…
If BTC stays afloat above the $48k level, the chances of it rallying to $50k are extremely high. The possibility of the same happening looked bright with BTC oscillating at $48,900, at press time. All it needs is a stronger push by the bulls.
Further, Bitcoin’s breakout was also confirmed by analyst Rekt Capital after the analyst noted, “BTC’s 4HR close above the diagonal would be enough to confirm the breakout.”
Source: Rekt Capital
