After 2 weeks of consolidation, Bitcoin managed to make a weekly shut above the important $50k degree, marking one other step ahead in bull market continuation validation.
This is now the fourth consecutive weekly close above the 21-week, 40-week, and 200-day moving average, 3 major levels that have been successfully reclaimed in order to re-enter bull market continuation validation. It’s important for BTC to start out establishing $50k as help this week, because the bulls begin eyeing $55k to $58k, a heavy technical and on-chain zone of resistance.
Notably, Bitcoin also managed to close above $50.5k the intraweek highs from 2 weeks ago and $51.1k, a key 61.8% retracement level. It is a very bullish technical sign and suggests additional upside within the coming weeks.
So far, BTC has followed our ideal scenario where price enters consolidation after reaching near-term overheated technical conditions at $50k from 2 weeks ago. On the best way as much as $50k and through consolidation, varied teams of older cash took revenue, inflicting a slight drop in UTXO Age Distribution. This also caused the Age Spent Output Bands metric to register a small temporary spike.
The promoting quickly stopped, and the older teams of cash returned to accumulation, inflicting the age spent output bands metric to fall again down, confirming there isn’t a pattern of whale exit liquidity. These metrics strongly invalidate the bear’s call for a bull trap.
After all, we’ve to stay open to all attainable eventualities and can proceed to watch growing old teams of cash and different key on-chain metrics to establish if whales want to promote within the $55k to $58k space. As of now, there is no sign of whale exit liquidity, another sign that bulls are back in control.
On-chain Metrics Displaying Energy
During the 2-week consolidation, BTC continued to be accumulated with spot exchange reserves down another 25,336 BTC. Throughout this era, BTC examined key help close to $46.3k on the 21-day MA, 21-day EMA, and different confluent ranges.
At the timing of writing, BTC is up nearly 77% from the lows at $29.2k, with funding rates at neutral levels. Open curiosity is hovering, reaching a excessive of $12.5B at this time. With such a strong rally and neutral funding rates, this suggests BTC still has plenty of upside. It might be much less best to see excessive funding charges for an prolonged time period whereas worth rallies, which makes the present circumstances very favorable for BTC bulls.
The trend of coins older than 12 months continues to show accumulation aside from the 18-months to 2-year-old coins, which have been falling, while at the same time the 2 to 3-year-old coins are rising. That is seemingly the gradual growing old of those teams of cash. General, the pattern continues to indicate older cash are holding.
Stablecoin reserves remain near the highs at $19.2B, signaling plenty of capital has yet to flow into the market. The bulls want to see these steady cash enter the market, particularly if BTC begins testing $55k to $58k.
Macro conditions continue to favor the bulls, with the Federal Reserve easing concerns of tapering bond purchases indicating rates will remain at zero for longer, a latest miss on US payroll report doubtlessly delaying the beginning of tapering.
El Salvador to Adopt Bitcoin
Bitcoiners around the world are looking forward to September 7th, 2021, as El Salvador will be officially adopting Bitcoin as legal tender. El Salvador’s adoption of Bitcoin might be seen as a significant step ahead in having Bitcoin turn out to be extra acknowledged, particularly amongst growing nations in want of economic inclusion within the world economic system.
Overall, fundamentals, technicals, and on-chain metrics continue to show strength, suggesting Bitcoin’s mid to long-term outlook stays bullish.